Saving for a house deposit while you rent may seem daunting, but with the right strategies, you can make progress towards your home ownership goal. We explore how you can go from renting to buying with saving tips and how you can get ahead.
1. Compare different utility providers
One of way to save money for a deposit while you rent is to regularly compare the prices of utility providers to ensure you’re on the most cost-effective tariff. Whether that is for your utilities, internet, or home insurance.
So many people stick with the same suppliers out of convenience, but this could mean that you’re paying more than what might be needed.
By shopping around and comparing deals, you might be able to find more competitive rates year on year.
Compare utility providers at least once a year, or whenever your contract is up for renewal. Prices and deals can change frequently, so staying on top is important.
2. Monitor your energy usage
Look at how you can lower your monthly bills by being energy alert – when not in use switch off or unplug.
Could you reduce your water use if you invested in more energy-efficient appliances such as light bulbs, which could reduce electricity costs over time. These things might not lead to a massive amount of savings each month, but if you’re serious about saving for a deposit while you rent then it all adds up.
3. Consider downsizing to save on rent
If you’ve got more space than you need, consider downsizing. What you might sacrifice on space you can save on the rent.
Be sure to calculate all potential savings – this includes monthly rent and running costs. At the end of the day, the amount you can save to downsize depends on your current rent and the cost of smaller properties in your area.
4. Making energy efficiency improvements
Improving your rental home’s energy efficiency can also help reduce utility bills. Things like adding draft excluders or using thicker curtains can make a difference. While you might not be able to make major changes to your rental, small improvements can make a big difference.
Discuss with your letting agent or landlord about possible energy-saving updates you or the landlord can make. Your landlord might even be willing to cover the costs if it adds value to their property.
5. Utilise ISAs or savings accounts
Maximise your savings by utilising Individual Savings Accounts (ISAs) or high-interest savings accounts. Shop around and keep an eye on rates moving accounts if you see accounts that offer the best interest rates and benefits.
ISAs offer tax-free interest, making them a great option for growing your deposit fund. Whatever the amount, adding a regular contribution to your savings pot will help. Set up a standing order so you don’t even need to think about it each month.
Other renting to buying tips
Other tips for renters to go from renting to buying include:
- Can you negotiate your rent with your landlord?
- If you have a spare room, are you allowed to sublet it?
- Taking advantage of cashback offers and loyalty programs.
- Sell some stuff and save the money
At the end of the day, every little bit helps when saving for a house deposit. Stay proactive, keep an eye on your finances, and make smart choices to get ahead.
Want to stay updated on more tips for renters and future homeowners? Sign up for our newsletter and get the latest insights delivered straight to your inbox!
Last Updated: June 21st, 2024
