Nearly half - 42 per cent - of prospective first-time buyers are spending their hard-earned savings on other things, according to Abbey Mortgages.

With the average buyer anticipating they will need savings of around £23,000 to buy their first property, Nici Audhlam-Gardiner, director of the firm, commented that it "is no mean feat" if they are blowing the cash along the way.

"But if you're single minded and set yourself a realistic savings target then you could find yourself making an offer on a house sooner than you think," she advised.

The majority of savers who dipped into their deposit fund spent the money on day-to-day living, fashion, gadgets and cars, the firm found.

Some first-time buyers also admitted they had used the fund to pay for a holiday or a wedding.

Ms Audhlam-Gardiner claimed that an uncertain market which may see house prices fall this year is leading people to spend their savings.

However, property is a wise investment move, she added.

The average property for a first-time buyer currently stands at £167,000, reports Alliance & Leicester.

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