Problems mounting for first time buyers

The latest Graduate First Time Buyer report from Scottish Widows Bank has revealed that the last year has seen a three per cent increase in the number of graduates yet to buy their first home.

Fifty-six per cent of graduates are yet to buy their own home, the study found, with the average graduate first time buyer deposit now standing at £16,666.

The average price of a home for graduates is now £122,045, or £179,228 in London – a 14 per cent rise on last year's figure of £107,070.

"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," advised Scottish Widows Bank head of product development and marketing Richard Clark.

Mr Clark said that the government's new plans for affordable housing, which aim to see three million houses built by 2020, were welcome but that there was much work still to do to make the market more affordable.


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