Santander UK has revealed that almost half of aspiring homeowners are taking on second income streams to get on the property ladder as affordability pressures continue to bite.
New research from the lender shows that 49% of prospective first-time buyers are now “home hustling” to build a deposit, using a range of side jobs to supplement their income.
The findings highlight the scale of the challenge facing buyers, with 78% citing house prices as the biggest barrier, followed by the cost of living (75%) and high deposit requirements (59%). More than a quarter (28%) also said they could not rely on financial support from family.
Despite this, demand for homeownership remains strong, with 72% of respondents still viewing it as a key life goal.
ALTERNATIVE INCOME
To bridge the gap, many buyers are turning to alternative income streams. The most common include completing online surveys (39%), gardening (20%), selling personalised items (19%), home baking (18%) and dog walking (17%) (main picture).
On average, those taking on side hustles earn £442 per month from around seven hours’ work per week, with 12% generating more than £1,000 monthly. Nearly two-thirds (64%) said they save most or all of this additional income towards their deposit.
Beyond side hustles, buyers are also adopting other strategies to boost savings, including putting aside bonuses or pay rises (24%), taking part in structured savings challenges (23%), and selling personal items such as collectibles (23%).
AFFORDABILITY MISCONCEPTIONS
However, Santander says misconceptions around affordability are still holding some buyers back. Around one in five (19%) believe they need at least £50,000 for a deposit, while 17% think the maximum loan-to-value available is 95%.
The lender points to its own products as evidence that entry requirements may be lower than expected, noting that its first-time buyer mortgage offering allows borrowing up to 98% loan-to-value with a £10,000 deposit. Internal data suggests the average aspiring buyer currently has around £9,000 saved.
David Morris, Director of Mortgages at Santander UK, says: “Home hustling is just one-way would-be buyers are boosting their income streams, expediating the time it takes to save for a deposit, stamp duty and legal costs as they take back control of their homeownership journey.
“But it’s clear that many common misconceptions still exist.
“This is where mortgage brokers provide invaluable support for first-time buyers, helping them to see behind the interest rates and headlines, and understand what options are available to them.”
