10% of graduates believe they will never get onto the property ladder

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by Elaine Frei

Increasing property prices, together with student debts are pushing property ownership out of the reach for many and according to Scottish Widows and one in ten graduates believe they will never be able to buy property of their own.

In addition, the study established that 56% of prospective homeowners who graduated within the last 5 years have not yet purchased a property, with 70% referring to increasing house prices as the main cause and many saying that they do not earn enough to obtain a large mortgage.

A spokesperson for Scottish Widows commented that the position is deteriorating for graduates. The main reason is that house prices and inflation are on the up but earnings have not moved in line with this.

Scottish Widows added that first time buyers are also struggling to save for a deposit and further interest rate increases are adding to the problems. Owning a home is likely to remain a fantasy for many.

Nationwide commented that property price growth in July is at 0.1%, offering a small amount of hope to graduates.