Graduates are finding it increasingly hard to get on the property ladder, with more than half unable to afford their own home, according to a new survey from Scottish Widows.
The insurer found that around 56 per cent of recent graduates are yet to buy their first home – 3 per cent more than last year. Meanwhile, a quarter of Britons who left university 10 years ago are still not homeowners.
Seven out of 10 of those who have yet to buy a home cited high prices as a major obstacle, while 58 per cent said they did not earn enough.
Nearly one in five graduates claimed they would not be able to meet the mortgage repayments if they bought their own place, and just over a quarter said they could not even afford to save for a deposit.
The average deposit for a graduate first-time buyer is £16,666, says the report, rising to £26,536 in London.
One in 10 said having to pay off student loans had prevented them from buying their first home and one in eight cited other debts, such as credit cards and personal loans.
Almost one in 10 graduates do not think they will ever be able to buy a house.
"Property prices and inflation are continuing to rise, but starting salaries have not moved in line with this," said Scottish Widows spokesman Richard Clark.Reuse content