Nearly one in five Gen Z adults are putting nothing aside for a house deposit, despite almost half expecting to buy their first home before they turn 30, new research has found.

Research commissioned by Barratt Homes found that 18% of Brits aged 18 to 29 who have yet to buy a home are not currently saving anything towards a deposit, highlighting the financial pressure facing younger would-be first-time buyers.

Among those who are saving, the average amount being put away is £340 a month. However, saving levels vary considerably, with 20% putting aside between £100 and £299 each month, while another 20% are saving between £500 and £699.

The findings come as 48% of Gen Z respondents said they expect to buy their first property before the age of 30.

A further 25% expect to make their first purchase between 30 and 34, while 16% believe they will buy after the age of 35. Meanwhile, 11% said they do not expect to be able to buy a home at all.

For those trying to build a deposit, traditional saving is being supplemented by additional sources of income.

Almost a quarter (24%) said they are taking on extra shifts or overtime to boost their savings, while 21% are working a second job or running a side hustle.

Cutting non-essential spending was another common approach, cited by 38% of respondents, while 19% said they were living with their parents for longer to reduce their costs.

Almost half (49%) of those surveyed said they were putting money into a dedicated savings account, making it the most common saving method.

Other approaches included using cashback or rewards apps (20%), selling unwanted items (19%) and investing in stocks and shares (16%).

However, awareness of government-backed home-buying support appears limited, with fewer than one in five respondents saying they were familiar with schemes including First Homes and Shared Ownership.

Adrian MacDiarmid, head of mortgage lender relations at Barratt Homes, said the findings showed optimism among younger people despite the challenges of saving for a deposit.

“The results from our survey paint an optimistic picture among Gen Z when it comes to their prospects of buying a home, with 48% believing they will get on the property ladder before the age of 30,” he said.

“However, there is clearly still some way to go, as cost-of-living pressures continue to make it difficult for younger people to put money aside towards a deposit.”

The research surveyed Brits aged 18 to 29 who have not yet bought a home, examining the different ways they are attempting to save for their first property.