Around a third of would-be first-time buyers say they face delays of almost two years as the cost-of-living crisis eats into their ability to save £43,500 for a home deposit, says Aldermore.

It finds that 32% of prospective FTBs anticipate delays of 20 months on average as seven out of ten of these young savers say rising living costs are eroding their finances, according to a poll by the specialist bank.

The lender adds that 64% of FTBs have had to scale back their regular savings, “increasing the time it takes to get on the property ladder”, while 19% have been forced to look for a cheaper home.

The data comes as inflation has risen steadily this year, and although it eased slightly in August, falling to an annual rate of 9.9% from 10.1% in July, the pace of price rises remains close to 40-year highs.

The Bank of England raised interest rates by 0.5% to 1.75% last month, to combat rising prices led by energy and food. It was the sixth rate hike by the central bank since December.

Data from the specialist lender says prospective FTBs plan to save an average of £43,500 for a deposit. New buyers in London and the South East expect to save the most, at £52,777 and £54,570, respectively. However, buyers in Yorkshire plan to save nearly half of that, at £27,379.

UK house prices slipped in August, slowing to annual growth of 11.5% from 11.8% in July, putting the average property price at £294,260, according to Halifax.

Aldermore’s poll shows that many FTBs are “struggling to save for a deposit”.

It says 51% of FTBs use savings accounts to save for a deposit that typically offers higher rates of interest.

But adds that “a concerning amount” of these younger prospective buyers hold cash in low-interest savings vehicles, with 44% using current accounts, “despite the current high-inflation environment eroding the real-term value of these savings”.

The poll adds that 8% of these would-be buyers rely on cryptocurrency to generate deposit funds, “despite its considerable volatility”.

Aldermore head of mortgage distribution Jon Cooper says: “While saving in this current economic climate may feel like a long and arduous journey, we’ve found that the majority of determined FTBs think the difficulties are ultimately worth it in order to get on the property ladder.”

The bank’s poll was conducted by data group Opinium between 31 May and 15 June, with a nationally representative sample size of 2,000 prospective FTBs.