News0 min ago
Youth 'Choosing Housing Over University'
Young people are choosing to save up to buy a house rather than go to university, it has been reported. The fear of massive debt after graduation, combined with ever-rising house prices, is proving a powerful deterrent to higher education. One third of 18-24 year olds are calling for a cut in college tuition fees so they are in a better position to save money for a first home.
According to a report from a leading high street bank, one in ten 18 to 24 year-olds look to purchase property rather than enhance their education. And homeownership beats travelling the world and getting married in a list of the most popular goals to be achieved before respondents turned 30.
It added that a further one in five has decided to give up on their first choice career for a better paid job which will help them onto the housing ladder.
More than half are currently living with their parents indefinitely and a further third have put world travel plans on hold. One in five of those aged 22-24 say they are redirecting pension contributions towards a house deposit.
A mortgage sales director at the bank has stated that buying a house has now become a very important issue for people of all ages.
"The fact people are willing to forgo their education highlights the importance of homeownership to the younger generation," she said.
However, these extreme measures may not always be necessary, as the research shows a number of misconceptions about the modern housing market. Almost 65 per cent of those spoken to believe a 10 per cent deposit an essential requirement but this is not the case. Mortgage providers are becoming increasingly flexible. Many of the old mortgage myths no longer apply.
More than half of young people incorrectly believe they need to be earning at least £30,000 to get on the ladder, with one in 10 believing a salary of £40,000 is required. More than half believe wrongly you must be completely debt-free to get a mortgage and a further two out of five think three years continuous employment is a prerequisite to mortgage approval.
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