Expert reveals 5 straightforward ways to add £2,500 to your house deposit in a year

Want to grow your house deposit with very little effort? (Picture: Getty Images)

Saving for a deposit can sometimes feel like an impossible task, with the average UK property now stacking up at £267,400.

For a 5% deposit, your money stash needs to total £13,370 – and 10% is even worse, at £26,740.

Naturally, the situation is even worse in London, where the typical home comes in at £683,820, as data from Rightmove shows. We’ll let you do the maths on that one.

But if you’re looking to grow your pot with very little effort, a money expert has shared how hopeful homeowners can add £2,500 to their deposit in a year with a few simple steps.

‘From switching bank accounts to renting out your spare room or garage, small changes in your daily routine and smart financial decisions can really add up,’ says Tom Blake from Money Saving Guru.

‘You don’t have to completely sacrifice your lifestyle either, just be a bit more strategic with your money.’

Open a Lifetime ISA

Firstly, Tom urges the importance of opening a Lifetime ISA – and he says doing so can add an extra £1,000 annually to your deposit.

When you’re saving for your first home, the LISA allows you to save up to £4,000 each year. The government will then provide a 25% bonus on top, which will bump up your funds by £1,000 if you’re buying alone.

If you’re looking to buddy up (whether with a partner or friends), then consider this figure even higher at £2,000. And that’s all from barely lifting a finger.

Switch bank accounts for bonuses

Equally, don’t overlook the value of switching banks for cash incentives.

Tom says banks typically offer between £100 and £200 just for setting up an account, and if you swap with every new season, you could accumulate up to £800 purely in cash bonuses.

Co-operative Bank is one example. You’ll get £175 for switching over to a standard current account if you deposit £1,000, have two direct debits, make ten debit card transactions and add your debit card to your phone’s digital wallet.

You can get extra money from switching bank accounts (Picture: Getty Images)

This all needs to be done within 30 days of the switch completion – and it might sound involved, but it’s worth it for a bit of extra dough, right?

First Direct also offers £175 for switching. Within 45 days, you’ll need to transfer over at least two direct debits, deposit £1,000, make more than five card payments, and log into your online banking account.

Ditch the brands

According to the Office of National Statistics, the average Brit spends £1,628 on food at home – but as Tom says, swapping to own-brand alternatives could save as much as 15%. Over a year, this could save as much as £240.

So, the next time you pop down to the supermarket, consider taking a closer look at the prices. Do you really need that bougie brand of chopped tomatoes, or would a basic alternative do?

Then, you can transfer to yourself what you would’ve otherwise spent on a more luxurious food shop – and rest easy in the knowledge that these pennies will have more longevity in a deposit pot.

Cut down on meal deals and takeaways

Popping to the shops for a meal deal is temptingly convenient – particularly if you’ve forgotten to plan ahead and bring something with you to the office.

But taking the time to meal prep could save you as much as £11 per week, which totals more than £550 each year.

Before you know it, you’ll be in your new home (Picture: Getty Images)

You don’t need to completely cut out meal deals, takeaways and meals out to save money, either. Tom suggests aiming to cut this figure in half, which can save £275 per year.

Sign up for cashback sites or apps

Cashback sites are an equally clever – and crucially, low-effort – way to build your house pot.

Tom says that utilising tools like TopCashback, Quidco, or Airtime Rewards can earn as much as £300 or even more each year.

How does it work? Thousands of UK brands like eBay, M&S, Hello Fresh, Amazon and ASOS pay TopCashback money when you spend with them – and this is shared with you as cashback.

The money is gifted directly to your bank account, but it can also be deposited into a PayPal or even converted into a gift card for a loved one.

Of course, you’ll still have some way to go after saving £2,500 before you can buy most homes, but every little helps.

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