Highest tides in 20 years threaten mass insurance claims

09 October 2006
Nearly one in ten graduates fear they may never be able to buy a house of their own, according to a survey by Scottish Widows.

Over half (53 per cent) said they would currently find it impossible to purchase their own first property, a figure that rises steadily with each passing year.

Nearly two-thirds (62 per cent) of graduate first-time buyers (FTBs) that have successfully got onto the housing ladder have bought with a partner, of which a further two-thirds (68 per cent) could not afford to buy them out if something went wrong.

This, says Murdo McHardy, head of product development and marketing for Scottish Widows Bank, is "a real Catch-22 situation" as if there is no plausible "exit route" should they buy with a partner before they are ready or wait until they can afford to buy on their own?

"Our report has yet again revealed that graduates are not finding it easy to get on the property ladder with house prices continuing to rise and first time buyers being unable to save for that deposit," Mr McHardy said.

The average deposit for a graduate FTB is currently £16,218, and over £30,000 for one in London, which restricts the market to a very small minority of high-earning graduates.

To read more about first-time buyer mortgages, click here.


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