Uni costs hinder first-time buyers

01-Mar-2006

University graduates could face a significant disadvantage when they are trying to get their foot on the property ladder, latest research shows.

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Research by Newcastle Building Society reveals that from September, universities in England and Northern Ireland are entitled to charge tuition fees of up to £3,000 a year.

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This means that when added to other university costs, freshers are expected to amass over £30,000 in debt, according to National Union of Students figures.

The average deposit for a first-time buyer home in the UK is £23,067, which means that graduate debt will overtake this sum.

"Student debt is clearly a growing issue which has a knock on effect later in life. Higher tuition fees can only increase the burden on the younger generation and make it even harder for them to enter the property market," said Steve Urwin, of Newcastle Building Society.

This news comes after an announcement yesterday from the Royal Institution of Chartered Surveyors (Rics), which revealed that an interest in rental property has increased as the younger generation are struggling to get a foot on the property ladder.

Figures from Rics show that the majority of tenants in the UK are young adults, with two renters in three under the age of 35 and a quarter under the age of 25.

Nevertheless, it is not all doom and gloom as it was revealed that graduate pay is also increasing as fast as or faster than graduate debt levels.

For advice on first time buyer mortgages or to find out how much you can borrow and how much it will cost you, from the UK’s leading High Street Brokers, Bradford and Bingley, click here


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