Owning property is one of the key signifiers of financial security in the UK, and a situation to which many of us rightly aspire. But buying property has only gotten more expensive in recent years, as high demand met perennially low supply – leading to a 13.6% rise in property values between August 2021 and 2022 alone.

Though house prices are set to fall in the coming years, the disparity between property values and first-time buyer budgets remains stark. What can you do as a young person to maximise your chances of getting on the property ladder?

Figure Out Finances – and Start Saving

The first step in any attempt to make a high-value investment, property or otherwise, is to gain a proper understanding of your own financial situation. For starters, your mortgage in principle will be based on the size of your annual salary. Meanwhile, your expenses against your income will dictate exactly how much you can save towards your deposit each month. With a budget that takes all of your income and outgoings into account, you can more effectively target areas of spending to quicken your deposit savings.

Here, it is important to address the budget you have in mind for your home. Not only will there be certain limits on the size of mortgage you can get accepted for, but there are also ancillary costs relating to solicitor’s fees and haulage to take into account. With these additional costs, you may need to re-consider your initial budget – whether looking for smaller properties, or looking in less desirable locations.

Funding Sources and Products

It is worth addressing here that personal finances alone are rarely enough to secure a strong deposit and favourable mortgage by themselves. While your earning history and current financial standing are crucial in securing a mortgage, scrimping and saving alone can result in relatively small gains – and a significant wait before your funds are viable.

Indeed, with house prices high as they are, first-time buyers are increasingly relying on a somewhat morbid source of alternative income: inheritance. Inheritance money is often significant enough that major investments like property become more palatable, and often the only way in which buyers can adequately afford their ideal home. If you are actively looking for property and due inheritance money, you can use a probate loan to access your inheritance ahead of release, reducing your wait time to putting in offers.

If you do not have an inheritance sum forthcoming, there are other financial products available that can maximise your available funds. One such product is the Lifetime ISA, or LISA, into which you can deposit £4,000 per year tax-free. Not only this, but you receive 25% of your annual deposits (up to £1000) each year as a government-funded bonus. The caveat is that the money can only be withdrawn to buy property or fund retirement.

Joint Ownership

Of course, even with all the above mechanisms you may be finding it difficult to make the numbers work on a new property. Rather than holding out for the market to cool, or for your finances to improve, you could seek alternative means of guaranteeing ownership – i.e.: through jointly applying for a mortgage with a friend or partner.