Graduates renting a decade after university

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by Kay Murchie

According to research from Scottish Widows, 56% of all UK graduates are still renting 10 years after leaving university. Almost three-quarters have pooled their resources with relatives, friends or partners in order to make their first purchase, an increase on the 69% noted in 2006.

A spokesperson for Scottish Widows said their research has established that first-time buyers are increasingly clubbing together with family and friends to get a foot on the property ladder. In principle, with a widening gap between earnings and property prices, it is a good idea, as it can help overcome some affordability issues.

However, the spokesperson added that sharing is is not an arrangement that people should rush into. Graduates need to be fully aware of the size of the commitment involved in buying with someone else.

Affordability problems are the main issue with 70% of graduates saying price is the main reason stopping them from purchasing a house. Another issue was debt as the average student debt is currently just over £10,500.

Scottish Widows concluded by saying purchasing a property with another person isn’t the only choice available to graduates. The government offers the shared ownership scheme which have been created to deal with issues of affordability.