Outlook 'remains dim' for graduate FTBs

Graduates are continuing to find it difficult to secure a first-time buyer mortgage and get a foot on the property ladder, according to research.

Some 56 per cent of graduates are yet to buy their first home, a Scottish Widows survey reveals, which is three per cent up on last year.

This trend does not only involve recent graduates, as a quarter of people who graduated ten years ago are still not on the housing ladder.

Some 70 per cent of graduates who are yet to buy a home said that house prices are the main barrier preventing them from entering the market, compared to 64 per cent last year.

Richard Clark, head of product development for Scottish Widows Bank, said: "This year's report reveals that the situation really is getting worse for graduates. The main issue is that property prices and inflation are continuing to rise, but starting salaries have not moved in line with this.

"First-time buyers are struggling to save for that deposit and recent interest rate rises are acting as a further deterrent. Owning a home is likely to remain a pipe dream for many."

Of those graduates who have managed to get a foot on the property ladder, 63 per cent bought with a partner, but 69 per cent of these people would not have the ability to buy the other person out.

Related Articles