Jump to content
House Price Crash Forum
Sign in to follow this  
HenryWeston

Graduates Putting Off House Purchases

Recommended Posts

Thomas Charles survey of 1000 graduates reveals major negative impact of unsecured debt on property ownership

Thomas Charles ( www.thomascharles.com), the leading debt solutions consultancy, today revealed the results of a survey amongst graduates to establish the impact of their levels of debt on their ability to buy a property. In conjunction with the UK's No 1 student accommodation website, Accommodation for Students(www.accommodationforstudents.com), the company surveyed 950 people across the UK who have graduated since 2001. 85% are under 30 and 65% are aged between 23 and 28, a prime age range for young professionals wishing to buy their first property.

The survey suggests that the current levels of unsecured debt amongst graduates is having a major impact on the property market with fewer graduates being able to afford to buy a property and having to postpone getting on the property ladder by several years. Of the graduates interviewed, only 10% currently had a mortgage. 58% of those interviewed said that they had been unable to buy a property or have had to postpone it because of debt. When asked how long it had/might delay them getting on the property ladder, just over a third, 36%, said up to 3 years, 23% said between 3 and 5 years, 19% between 5 and 10 years, and nearly a quarter, 24%, said they could not foresee being able to buy a property in the foreseeable future. 630,045 students gained higher education qualifications last year (source: Students in Higher Education Institutions 2004/05).

Graduates support high levels of unsecured debt. One third didn't have debt at all but, of the remainder, 36% owed up to £5000, 23% owed between £5000 and £10,000, 32% owed between £10,000 and £20,000 and 11% over £20,000. Student loans represent a large part of this unsecured debt, with the average loan being about £10,000. However, the overall unsecured debt is swelled considerably by graduates' willingness to incur credit card and personal loan debt once they are working. The situation is further compounded because graduates are very often not achieving the salaries they expect and often have to start their career with modest earning levels.

James Falla, Director of Thomas Charles, commented: "At Thomas Charles we're not surprised that graduates are finding it difficult to get on the property ladder. With 60% of graduates leaving university with a student loan debt legacy they are already off to a bad start. Add the attractions of graduate loans and credit cards and it is easy to see how unsecured debt piles up even when you have a job. They find themselves living and working with others who are earning good salaries with high cost lifestyles. Trying to keep up with these lifestyle expectations means that many graduates just get further in debt, often to a critical extent. Many of our younger clients at Thomas Charles clearly fall into this category.

For many the idea of ever getting on the property ladder seems a distant prospect and for a considerable number, a quarter of our survey, it appears impossible in the foreseeable future."

The survey also showed that debt has an adverse affect on graduate savings and pensions too. Two-thirds of respondents said their level of debt was seriously affecting their ability to save. Just over a half, 51% said it adversely affected their ability to make pension contributions.

Share this post


Link to post
Share on other sites

Misses the point - Unsecured debt is of course an influence in not buying a property but surely the main factor is houses are too expensive.

The point at the end about pensions is correct. The effect of lack of pension provision (like IO Mortgages) will not become clear for decades. This housing boom has caused a whole generation to forget about the future in order to get on the housing ladder.

Share this post


Link to post
Share on other sites

Thomas Charles survey of 1000 graduates reveals major negative impact of unsecured debt on property ownership

Thomas Charles ( www.thomascharles.com), the leading debt solutions consultancy, today revealed the results of a survey amongst graduates to establish the impact of their levels of debt on their ability to buy a property. In conjunction with the UK's No 1 student accommodation website, Accommodation for Students(www.accommodationforstudents.com), the company surveyed 950 people across the UK who have graduated since 2001. 85% are under 30 and 65% are aged between 23 and 28, a prime age range for young professionals wishing to buy their first property.

The survey suggests that the current levels of unsecured debt amongst graduates is having a major impact on the property market with fewer graduates being able to afford to buy a property and having to postpone getting on the property ladder by several years. Of the graduates interviewed, only 10% currently had a mortgage. 58% of those interviewed said that they had been unable to buy a property or have had to postpone it because of debt. When asked how long it had/might delay them getting on the property ladder, just over a third, 36%, said up to 3 years, 23% said between 3 and 5 years, 19% between 5 and 10 years, and nearly a quarter, 24%, said they could not foresee being able to buy a property in the foreseeable future. 630,045 students gained higher education qualifications last year (source: Students in Higher Education Institutions 2004/05).

Graduates support high levels of unsecured debt. One third didn't have debt at all but, of the remainder, 36% owed up to £5000, 23% owed between £5000 and £10,000, 32% owed between £10,000 and £20,000 and 11% over £20,000. Student loans represent a large part of this unsecured debt, with the average loan being about £10,000. However, the overall unsecured debt is swelled considerably by graduates' willingness to incur credit card and personal loan debt once they are working. The situation is further compounded because graduates are very often not achieving the salaries they expect and often have to start their career with modest earning levels.

James Falla, Director of Thomas Charles, commented: "At Thomas Charles we're not surprised that graduates are finding it difficult to get on the property ladder. With 60% of graduates leaving university with a student loan debt legacy they are already off to a bad start. Add the attractions of graduate loans and credit cards and it is easy to see how unsecured debt piles up even when you have a job. They find themselves living and working with others who are earning good salaries with high cost lifestyles. Trying to keep up with these lifestyle expectations means that many graduates just get further in debt, often to a critical extent. Many of our younger clients at Thomas Charles clearly fall into this category.

For many the idea of ever getting on the property ladder seems a distant prospect and for a considerable number, a quarter of our survey, it appears impossible in the foreseeable future."

The survey also showed that debt has an adverse affect on graduate savings and pensions too. Two-thirds of respondents said their level of debt was seriously affecting their ability to save. Just over a half, 51% said it adversely affected their ability to make pension contributions.

This is a total non-story and p1ss-poor jounalism. All it is is a puff for "the UK's No 1 student accommodation website, Accommodation for Students(www.accommodationforstudents.com)". A classic example of crass surveys being conducted for advertising purposes.

Why would it be a surprise to anyone that with a lot of debt, you are not likely to be about to buy a house at a time when prices are at a historic high? Do you really need to conduct a survey to reach that conclusion?

Share this post


Link to post
Share on other sites

Yes, prices are too high but it can't help that the 12-20k you might have saved for your deposit now goes to paying off your college debts.

As several people said on a recent thread HPI, student debt, underemployement and low salries have left many kids who did well at school and went to University a kind of impoverished underclass.

While mass surviellence society marches forward and our PM plots WWIII with his US buddies seems the working poor are kept happy with Big Brother and binge drinking, the boomers and rich with second homes, fun and frolics, and the young middle class bogged down in debt and limited employment prospects.

Edited by CrashedOutAndBurned

Share this post


Link to post
Share on other sites
While mass surviellence society marches forward and our PM plots WWIII with his US buddies seems the working poor are kept happy with Big Brother and binge drinking, the boomers and rich with second homes, fun and frolics, and the young middle class bogged down in debt and limited employment prospects.

I don't think they give a crap anymore. Bush and Blair are convinced that by attacking Iran they'll be able to cause Armageddon and be raptured away: so why should they worry about the future of Britain and America? 'God' will take care of that.

Share this post


Link to post
Share on other sites

I don't think they give a crap anymore. Bush and Blair are convinced that by attacking Iran they'll be able to cause Armageddon and be raptured away: so why should they worry about the future of Britain and America? 'God' will take care of that.

Every time America looks like preparing for another war (or people think it is), the usual-suspect contingent of UK kooks pops up to say it's all for Armageddon. That's right, couldn't have anything to do with oil, nukes, AIPAC or al-Qaeda....

Despite the myth, when it comes to influencing US foreign or other policy (real estate bub-bull anyone?), flyover country comes a sorry second to thighover country.

Share this post


Link to post
Share on other sites

Syria and Iran are the Nazis of tommorrow, if we don't take them out, they will go for us in the future. They want to kill all Jews first, then kill or convert everyone else. They are unelected dictatorships who terrify their own populous, and the sooner they are removed from the world stage, the better. The world is better without Sadam, and Syria and Iran will be no different. Iraq is a mess because of the meddling of its neighbours as they can't afford to see democracy work as their own people will rise up. As much as I hate Blair and Bush, they'e right on this one, the sooner this evil is stamped out the better.

Share this post


Link to post
Share on other sites
Every time America looks like preparing for another war (or people think it is), the usual-suspect contingent of UK kooks pops up to say it's all for Armageddon.

The truth doesn't change just because you deny it. Are you seriously claiming that there aren't people in high positions of power who think we're in the 'end times' and regard this is their chance to bring about the 'day of judgement'? Even Ronald Reagan made comments about believing that Armageddon was just around the corner.

Apocalyptic Christianity is the elephant in the living room that no-one wants to talk about right now: but it's by far the most dangerous threat to the human race at this point.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.