Students opt to get on property ladder
(16 January 2008)

Fewer students are intending to embark on gap years due to increasing difficulty of getting on the property ladder, according to new research.

A study by Abbey showed that that 42 per cent of students have already started saving for a deposit, twice the amount who have opted to spend money on travelling.

The research also showed that one in ten graduates, who have financed a gap year in the past ten years, said that they would not have made the same decision today.

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

Abbey's research also showed that 21 per cent of respondents felt they could have made some savings while at University.

Meanwhile, two of Britain's biggest mortgage lenders have doubled the minimum deposit needed by a first-time-buyer.

Since the average first-time-buyer spends £147,834 on a new home they will need a deposit of £14,783 compared with £7,392.