Rising cost of living `dents homebuyer deposits`

The rising cost of living means that more first-time buyers are struggling to save money for their deposit than a year ago, a new report has uncovered.

A study by Sainsbury`s Finance found that 16 per cent of those aged between 25 and 34 were saving less than they were, with only nine per cent saving more.

The research found that 36 per cent claimed that they were not saving any money at all from their monthly pay packets.

As savings have become scarce, the survey found that many potential homebuyers have turned to personal loans in order to fund their purchases.

Neil Cameron, savings manager at Sainsbury`s Finance, said: "First-time buyers need to have a larger deposit that they did a year ago, so those looking to get on to the property ladder need to be saving more, not less."

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