First-time Buyers
Graduates excluded from property ladder
Almost one in ten graduates think that they will never be able to buy a house, a study has revealed.
Due to student debt and rising house prices, almost a third of graduates struggle to save enough money for a deposit, according to Scottish Widows.
Those who do manage to get a deposit have either bought with a partner, or been supported by their parents, the survey found.
Richard Clark, spokesperson for Scottish Widows Bank, said: “The situation is really getting worse for graduates. Property prices and inflation are continuing to rise, but starting salaries have not increased in line with this.”
The average graduate earns between £17,000 and £25,000 a year, and requires a deposit of £16,666 in order to qualify for a mortgage.
The average house price for graduate first-time buyers is £122,045, following a 14% jump in prices over the last year alone.
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Nearly a third of graduates think that they could get on the property ladder if they were not required to put down a deposit.
A further 25% believe that mortgage lenders should assess graduates on their future earning potential, rather than their starting salary.