New research carried out by The Co-operative Bank and Places for People has revealed that the average first time buyer currently feels they need to have saved £19,100 to enable them to buy a property.

Despite the current housing market outlook, the research conducted with 1,500 first time buyers shows that over half of those questioned still feel renting is 'throwing money down the drain' (54%), with the majority estimating that it will take them up to two years to begin thinking about buying their first home.

As a result first time buyers are now making more sacrifices to enable them to save for a home. According to research conducted last year before the credit crunch over half of first time buyers (57%) were not prepared to make any sacrifices to get onto the property ladder, whereas now less than one in ten share this approach (9%).

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The findings also highlight the actions that first time buyers are taking at the moment, which include lowering their expectations of the properties they are looking at (46%) and changing their shopping habits (36%). In addition, some first time buyers are even trading on eBay and at car boot sales (18%), reducing the amount of energy they use, amid rocketing fuel bills (19%) and taking a second job (11%) to save for a deposit.

Victoria Drummond, Operations Manager for Ownhome said: "This new research shows that the dream of owning a home is now out of reach for many first-time buyers, as they struggle to save for a deposit, against a backdrop of soaring household bills and the increased cost of living.

"As a result many more people are being entrepreneurial and making sacrifices in a bid to try and claw their way onto the property ladder including cutting down on eating out, holidaying in the UK rather than abroad, and swapping supermarkets to drive down their food bills.

"It is vital that that the Government and the housing industry continue to offer simple, clear and innovative products that provide first-time buyers with the essential financial support needed to help them take their first steps onto the property ladder."

(CD/NS)