Graduate first-time buyer plight
A stark assessment of the current plight of graduate first-time buyers reveals more than half cannot afford to buy a home.
According to a report from Scottish Widows high house prices combined with student debts are pushing property ownership out of the reach of many.
Even for those graduates that have succeeded in getting on the property ladder, almost two thirds had to rely on buying with a partner and if they were to split up 68% would not be able to buy them out, this rises to 75% of women.
For the majority of graduates (64%) it’s unaffordable house prices that prevents them from getting on the ladder. This figure has been consistent year on year as the greatest barrier to getting on the housing ladder. The following reasons were also cited:
Almost a third just cannot save for a deposit;
Most surprisingly 60% of graduates believe they do not earn enough to get them on the housing ladder;
One in seven believe they are just not ready to make the commitment.
With the average deposit for graduate first-time buyers currently at £16,219 (rising to £30,185 in London) buying a home is likely to remain an unrealistic dream, said the report. Debt is also an issue, the average student loan debt is £9,246 and one in eight believe this will prevent them from getting on the property ladder. Debt is such a barrier for some graduates that in hindsight one in six would not have taken out a student loan whilst at university.
Murdo McHardy, head of product development and marketing at Scottish Widows said: “For graduates to stand a chance of getting on the housing ladder, then both lenders and the government need to work hard to develop products that suit their needs.”
“Increasingly graduates are having to find different ways of getting on the ladder – through buying with other people to relying on their parents to put them up while they save. But there are solutions out there such as products that will allow graduates to borrow more than three times their salary and those that will allow parents to guarantee the loan.”
A stark assessment of the current plight of graduate first-time buyers reveals more than half cannot afford to buy a home.
According to a report from Scottish Widows high house prices combined with student debts are pushing property ownership out of the reach of many.
Even for those graduates that have succeeded in getting on the property ladder, almost two thirds had to rely on buying with a partner and if they were to split up 68% would not be able to buy them out, this rises to 75% of women.
For the majority of graduates (64%) it’s unaffordable house prices that prevents them from getting on the ladder. This figure has been consistent year on year as the greatest barrier to getting on the housing ladder. The following reasons were also cited:
Almost a third just cannot save for a deposit;
Most surprisingly 60% of graduates believe they do not earn enough to get them on the housing ladder;
One in seven believe they are just not ready to make the commitment.
With the average deposit for graduate first-time buyers currently at £16,219 (rising to £30,185 in London) buying a home is likely to remain an unrealistic dream, said the report. Debt is also an issue, the average student loan debt is £9,246 and one in eight believe this will prevent them from getting on the property ladder. Debt is such a barrier for some graduates that in hindsight one in six would not have taken out a student loan whilst at university.
Murdo McHardy, head of product development and marketing at Scottish Widows said: “For graduates to stand a chance of getting on the housing ladder, then both lenders and the government need to work hard to develop products that suit their needs.”
“Increasingly graduates are having to find different ways of getting on the ladder – through buying with other people to relying on their parents to put them up while they save. But there are solutions out there such as products that will allow graduates to borrow more than three times their salary and those that will allow parents to guarantee the loan.”
posted by tony at 9:06 PM
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