1 in 4 first-time buyers would consider living overseas for a time in order to save up for a house in the UK, National Savings & Investment's latest Quarterly Savings Survey has found...

A quarter (25%) of British people attempting to get onto the property ladder in this country would consider moving abroad - even as far as Australia or New Zealand - to live more cheaply so they could save for a deposit to buy their first home in Britain.  The findings are revealed in the latest Quarterly Savings Survey from National Savings and Investments (NS& I), published today.

Most popular foreign saving locations

The Quarterly Savings Survey asked more than 1,000 people who do not own or are not currently buying their own home, "Would you consider moving abroad where the cost of living might be cheaper in order to save to get on the property ladder back in Britain?"

The results show that Spain, Australia or New Zealand and the USA were the top choices for those people who would consider moving abroad for a cheaper life so they could save for a deposit on their first home in Britain.  A fifth would also consider moving to Eastern Europe:

• Spain: more than two in five (43%) 
• Australia or New Zealand: one in three (33%) 
• USA: more than one in five (22%) 
• Eastern Europe: one in five (20%)

The survey found that moving abroad as an option is more popular with younger people.  Whilst overall, one in four of the people surveyed (25%) would move abroad, this proportion rose to more than a third (36%) in the 25 to 34 age bracket.  Just under a third (32%) of 35-44s said they would emigrate for a cheaper life.

Relocating within Britain also viewed as an option

While a quarter of British people would consider moving to another country to live more cheaply in order to save for a deposit on a home in Britain, an almost equal number (24%) would be happy to move to a cheaper part of this country for the same reason.

Again, younger people are the most flexible in terms of location, with more than a third of 16-24s and 25-34s (35% respectively) saying they would move to a cheaper part of the country for the sole purpose of saving money for a deposit on their first home.

Dax Harkins, senior savings strategist at NS& I, said: "British people clearly have a great appetite for buying a property in this country but find it difficult to save for a deposit while living here.  It seems many will go to extreme lengths to achieve their goal, even if it means moving to the other side of the world in order to save up for a deposit back home."

Other findings

NS&I's winter 2006-07 Quarterly Savings Survey, running since spring 2004, examines trends in savings behaviour across Britain.  This winter's survey, looking at the months of December, January and February has also came up with the following findings:

General savings trends:

• An increase in the mean amount saved by those saving regularly to £184.32, compared to £169.13 in winter 2005-06 
• A decrease in the percentage of regular savers to 43%, compared to 55% in winter 2005-06 
• A decrease in the mean amount saved per head to £70.69, compared to £85.71 in winter 2005-06.

Savings aspirations fall at an even faster rate:

• The amount people would ideally save fell from £181.86 per month last quarter to £176.48 per month this winter.  This fall continues the decline experienced from summer to autumn 2006, and is the biggest fall, quarter on quarter, since the survey began.

But committed savers are saving more:

• The 43% of the population that save regularly have, on average, saved £184.32 each month this winter, an increase from the £169.13 they saved in winter 2005-06(1).