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Graduates cannot afford to buy homes

11/11/05

A continued slowdown in the housing market is still making it difficult for graduates to jump onto the property ladder.
 
According to a buyer survey by financial institute Scottish Widows two-thirds of graduates believe that current property prices make buying a house unaffordable.
 
It seems the majority of those finishing their degrees see their student debt and loans as the biggest barrier to purchasing a home - although this number has fallen from 55 per cent last year to 44 per cent this year.
 
Around 40 per cent said they had difficulty paying for a deposit on a home, and those who had made purchases within the last year said they had to settle for homes smaller or in a different area to what they truly wanted.
 
However, location was listed as a more important property attribute than size, with one in three graduates citing location as their priority, compared to one in eight who thought size was important.
 
Scottish Widows Bank's Murdo McHardy said: "Today's graduates should be in a position to make that first step on the property ladder.
 
"Not everyone can rely on friends and family to help them buy their first house and there is a real need for most assistance from both lenders and the government when it comes to first-time buyers."