Note the following content is intended to be educational but it does contain promotional material for Kaldi.

Saving for a house deposit when your earning £35,000 per year – without moving in with your parents

Buying a home has always been a milestone. The “British Dream”, you might say. But for many people earning an average salary, it now feels more like a long-distance goal (and in some cases, an unattainable one)l than a short-term plan. The rise in property prices, along with rent and everyday costs has made saving for a deposit harder than ever. This is especially true  if you’re not in a position to move back home and cut your expenses dramatically.

Still, while the road may be longer, it’s far from impossible. With the right mindset and a few creative habits, you can build up a house deposit even on a £35,000 salary without sacrificing your independence.

Why your salary can't keep up with house prices

Over the past 20 years, UK house prices have almost doubled,  from around £150,000 in 2004 to £292,000 in 2024. But, and you’ve probably guessed it already,  wages have barely moved in real terms. 

According to the ONS, full-time median pay rose just 1.2% after inflation in 2024, the latest data available. That gap has made buying a home far more difficult. Go back to the 1970s, and houses cost about four times average earnings. Today, it’s closer to nine. For most, inflation has priced them out of ownership.

Rethinking what saving looks like

When we talk about saving for a house, we often imagine one big, disciplined act like setting aside a chunk of income every month and watching it grow. The reality  is quite different however. Most deposits are built gradually through smaller, more sustainable habits.

The first step is understanding how much you need. A 10% deposit on a £250,000 property is £25,000, but if you qualify for a 95% mortgage, you’d only need £12,500. Setting a clear, realistic number helps you stay motivated because you can see how each pound moves you closer to a real goal.

Once you know your target, the next move is to separate what you can comfortably save from what you wish you could save. Trying to save too aggressively is one of the quickest ways to burn out and fall off track. 

A sustainable goal might be around £300 to £400 a month, depending on your rent, bills and lifestyle. Over three years, that could total £10,000 to £15,000  before any interest, bonuses or extra contributions.

Making your everyday spending work harder

If you’re renting and managing bills on a £35,000 salary, saving may already feel like a stretch. One part of the answer could lie in the small, often-overlooked wins that come in. These are the types that turn your normal spending into something productive.

Kaldi does exactly that, and every time you shop with one of our partner brands, you earn cashback that’s automatically invested for you. Instead of sitting unused in a cashback account or vanishing into your next online order, the money starts working on your behalf.

It’s an idea that bridges the gap between spending and saving and is ideal for anyone who wants to build momentum without having to change everything about their lifestyle. Think of it as free money that goes straight into your investment account, making saving much easier.

You’re still buying what you’d normally buy anyway, be it clothes, groceries or gifts. But you’re also growing a deposit in the background. Because it’s automatic, it removes the need for constant effort or restraint.

Creating flexibility in your savings

The biggest barrier for most savers isn’t income so much as it’s consistency. Life gets in the way. A car service, an unexpected bill, a week where your energy bill shoots up can all eat into your savings and slow momentum. Building flexibility into your plan helps avoid losing that momentum when those unexpected costs pop up.

Instead of aiming for the same monthly amount, set a range. For example, between £250 and £400. That way, you still make progress even in the more difficult months. Some months, you’ll contribute more – perhaps when you get a bonus or spend less on holidays or gifts – and that evens out the slower periods.

You can also add interest-free or low-interest saving methods to your mix. Regular savers or high-yield accounts often offer better rates if you commit to consistent deposits. The goal isn’t only to save, but to make the act of saving feel manageable over time.

Building small investment habits

For many first-time buyers, investing feels like a separate world. They’re something to worry about later down the line. But when done sensibly, investing can complement your savings plan. You don’t need to take big risks or have a huge portfolio. Instead,  it’s about giving your money the chance to grow while you’re building towards that all-important deposit.

That’s another area where Kaldi fits naturally. By funneling cashback into index funds or other diversified investments, the app helps your spare change grow in the background. Even if markets fluctuate, it’s a way to engage with investing early and understand how small, consistent contributions can add up over time.

If you’re new to investing, start small and focus on the habit rather than the return. Kaldi simplifies investing by automatically directing your round-ups and cashback into accessible index funds, removing the complexity that often puts people off. 

You don’t have to analyse stocks or time the market and can keep spending as normal while watching your investments build quietly alongside your savings. Over time, those tiny, regular deposits can form a solid foundation for your future home.

Saving without cutting out your life

It’s easy to read saving advice that sounds like punishment, whether it’s no morning coffee stops or that Deliveroo order. But that’s not realistic for most people, and it’s rarely sustainable. Your best bet is balance and knowing which comforts genuinely add value to your life and which are just habits.

You might decide that eating out once a week is worth it, but random online purchases aren’t. You might keep your gym membership but switch to a cheaper phone plan. These choices add up, but they also protect your quality of life and keep your motivation steady.

You’ll find your rhythm over time, one that allows you to live in the present while still building for the future.

Bringing it all together on your path to owning a home

Saving for a deposit on £35,000 a year takes patience and consistency, plus a bit of creativity. But it doesn’t require extreme sacrifices.

The trick is making saving and investing part of your normal financial flow and embed it in your everyday life rather than treat it as a separate, painful task.

That’s what Kaldi was built for. By connecting everyday spending with real, long-term growth, we help people take practical steps toward bigger goals – like a deposit for a house. 

Because in the end, saving for a home isn’t only about money. It’s creating stability on your own terms, even if you never move back in with mum and dad.

Just remember, when you invest your capital is at risk. The value of investments can go up or down and you may get backless than you put in. Investing may not be suitable for everyone. Consider your own financial situation and investment goals, and seek independent financial advice if needed.