Half of graduates still renting a decade later

Over half of all graduates in the UK have still not found a way onto the property ladder a decade after leaving university.

That is according to research from insurer Scottish Widows, which finds only 44 per cent of graduates have secured their first property up to ten years after leaving study.

The data also reveals nearly three quarters, some 72 per cent, have clubbed together with family, friends or partners in order to make their first purchase.

This is an increase on the 69 per cent recorded last year.

"The findings tell us that first-time buyers are increasingly pooling their resources in order to get on to the property ladder," said Amanda Docherty, communications manager for Scottish Widows Bank.

"In principle, with a widening gap between earnings and house prices, it is a good idea, as it can help overcome some affordability issues. Two salaries stretch further than one."

A lack of affordability is the main driving force behind opting to share the cost of a mortgage, with 70 per cent of graduates citing price as the key factor preventing them buying.

Debt was also an issue for many, with the average university student's debt now standing at £10,586.

"However, this is not an arrangement that people should rush into. Nobody wants to end up in a situation where they find it extremely difficult to share a home with someone they no longer get on with but can't afford to do anything about it," continued Ms Docherty.

"With no exit route in place, graduates need to be fully aware of the size of the commitment involved in buying with someone else."

A worrying 69 per cent of those living in shared property would not be able to afford to buy out a partner if the arrangement turned sour.

"Although buying together isn’t a new trend in itself, it appears that buying together out of wedlock or civil partnership is more popular now as is buying with friends and family," explained Ms Docherty.

"However, buying together isn’t the only option available to graduates. The government’s shared ownership schemes are designed to tackle issues of affordability and lenders like ourselves also offer a range of solutions, such as guarantor facilities which require parents to cover only a portion of the loan.

"I would urge graduates to take the time to consider all the options that are available in the marketplace and choose the one that is right for their circumstances."