Almost two-thirds of first-time buyers hold down a second job to help them save for a deposit, according to a poll from Ipswich Building Society.

The mutual’s survey says 64% of FTBs turn to a second source of income while saving for a home, which it says plays against this group “being labelled as the ‘bank of mum and dad’ generation”.

Second job figures among this group jump to 85% in London. 

The survey said 32% of those saving for a home have started their own business, half of which are related to their main job.

Other common forms of second income include informal work such as taking on a bar job at weekends, 23%, or using skills from their day jobs to earn extra cash on the side, such as software developer designing websites for friends and family after work. This was popular among 22% of FTBs.

A further 21% did domestic work such as childcare, gardening or cleaning to raise a deposit.

These extra jobs allow FTBs to contribute on average 39% of the deposit they have to pay. 

A typical FTB faces a deposit of almost £59,000, meaning new homeowners are raising £23,020 from their side jobs.

The survey added that 62% of FTBs claim they would not have been able to save for a deposit without this extra income, with 63% believing it allowed them to get onto the property ladder sooner. 

But Ipswich Building Society head of intermediary relations Charlotte Grimshaw says that these second jobs are not always included in a lender’s affordability tests.

Grimshaw says: “While an additional stream of income should be applauded, not every first-time borrower will be aware this extra revenue may not be taken into consideration for their affordability assessment. 

“For clients with a second income stream, we’d be looking for evidence of these earnings, such as payslips, or, for self-employment, a tax return. 

“Crucially we need the applicant to demonstrate the additional earnings are ongoing and reliable, in order to be used for future mortgage payments.

“Having a full understanding of your client’s sources of income and being able to provide documentation will enable lenders to get to grips with your case faster. 

“The trends we’ve seen in our research look only set to increase as house prices continue to rise, thus demanding bigger deposits, and so more first time buyers are drawn down the side hustle route.

“Of course, FTBs, and anyone else with a side hustle for that matter, should check with HMRC about what constitutes additional income and when this needs to be declared for tax purposes.”