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Property changes priorities for students
http://www.themortgageprovideronline.com/articles/354/1/Property-changes-priorities-for-students/Page1.html
Adfero Journalist

 
By Adfero Journalist
Published on 01/16/2008
 
A desire to get on the property ladder has changed attitudes among Britain's student population.

Property changes priorities for students

property chnages priorities for studentsA desire to get on the property ladder has changed attitudes among Britain's student population.

Research by Abbey, the high street bank, has revealed that traditional aspirations such as owning a car or taking time out to go travelling now take second place to home ownership.

Almost half (42 per cent) of the students canvassed by Abbey said they had started saving to buy a house.

This compares to just 19 per cent who were saving for a car or a gap year.

"House prices have brought in a harsh new reality for students," said Nici Audhlam-Gardiner, head of mortgages at Abbey.

"They now need to weigh up the benefits of travelling against jumping straight into a career and being able to afford to get onto the property ladder.

"It's certainly encouraging to see that many university students are sensibly putting money aside for that important deposit on their first home," she added.

Despite evidence that many are saving early, it is still likely to be difficult for recent graduates to buy their first property.

Even if house price growth slows significantly this year as predicted, the cost of property in some parts of the country remains well above what most graduates can afford.

Interest rates are also higher than they were last year despite last month's cut and the credit crunch has encouraged many mortgage providers to tighten their lending criteria.


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