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Most graduates yet to own property
Friday, 27 July 2007
Life after graduation
More than half of graduates have not got a foot on the first rung of the property ladder, according to new research.
The Scottish Widows study claims that 56 per cent of graduates do not own property. Of that group 70 per cent claim they cannot afford to buy and almost one in ten say they will never be able to meet the costs.
The average deposit for graduate first time buyers is now £16,666, rising to more than £26,000 in London and is providing a difficult obstacle to university leavers who already have debt.
Richard Clark, at Scottish Widows Bank, said: "This year's report reveals that the situation really is getting worse for graduates."
He added: "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"
Scottish Widows research claimed that the average graduate now leaves university with a debt of more £10,000.