Ten per cent of graduates 'will rent forever'

News Category: Industry News

Graduates are increasingly struggling to afford to buy their own property, suggesting that they will have to continue to rent for the foreseeable future, a new report found.

Research carried out by Scottish Widows found that 56 per cent of graduates are still living in rented accommodation because they are unable to purchase their first property.

This represents a three per cent rise since 2006 and indicates that the rental market in the UK is likely to remain robust into the future.

Nearly three-quarters (70 per cent) of graduates said that the high cost of property would force them to remain in a rented home for now.

Furthermore, one in ten thought that they would rent for the rest of their lives, as they would never be able to afford their own home.

"This year's report reveals that the situation really is getting worse for graduates," explained Richard Clark, head of product development and marketing at Scottish Widows.

"The main issue isthat property prices and inflation are continuing to rise, but starting salaries have not moved in line with this.

"Owning a home is likely to remain a pipe dream for many."

Recently, Adrian Turner, chief executive of Arla, commented: "The private rented sector is continuing to provide choice in housing and a safety valve for the housing market, particularly now, at a time of mixed expectations for future strong rises in house prices."