Huge student fees to limit house prices further?

brit1234

Huge student fees to limit house prices further?

Does any one believe that these high university fees of £12,000 a year excluding rents, food and booze will limit house prices.

Just imagine going up to your bank manager with a £50k student debt asking for a mortgage. Let alone saving a 25% deposit.

If this goes through house prices may go even lower as former students represent what I reckon is a significant section of ftb. They underpin the whole of the bottom of the property market.

What's your thoughts?

bendix

I think you're stretching.

IveSeenTheLight

brit1234 wrote: »

Does any one believe that these high university fees of £12,000 a year excluding rents, food and booze will limit house prices.

It probably will.
It probably will make it harder to clear their debts and start saving.

Do you think this might be an indicator that there will be an increased demand on rental properties while the debt is repaid and a seposit is saved?

Incidently, isn;t the student debt to only be repaid after a minimum wage amount and then on a sliding scale depending on the wage obtained.
Thus you pay less in the initial years and more when you become established

brit1234

I am a little worried it may provide a window for buy to let. The tax advantages are there already for buy to let, the further hindrance on ftbs could give them even greater hold.

lee636

If the student debt is making it harder for them to buy it will at least save the better houses for the rest of us :rotfl: *pulls pin and waits*

shortchanged_2

We're heading back to a good old society in the UK of the have and have nots. The priveledged and the underclass.

Bye bye to the middle classes.

bendix

shortchanged wrote: »

We heading back to a good old society in the UK of the have and have nots. The priveledged and the underclass.

Bye bye to the middle classes.

Not to mention the educated and the illiterate.

CLAPTON

as I understand the proposals, new graduates will have higher after deductions incomes as currently student loans are repaid at a rate of 9% for earnings above 15k per year whilist the new proposals are that they pay 9% for earnings above 21k so they will all be better off by up to 9% of 6k i.e. 540 per annum so housiong will be more affordable
of course they will be repaying for much longer so may affect people trading up from their first home

neas

they;d have to earn over 21k and most likely lose a 9% 'tax' on any earnings above that as it is at the moment. I dont think it will hurt them too much. I didnt have to declare student loan when i got a mortgage.

blueboy43

IveSeenTheLight wrote: »

Do you think this might be an indicator that there will be an increased demand on rental properties while the debt is repaid and a seposit is saved?

Probably more than offset by;

1) People studying in their home town and living at home.
2) Fewer people studying full stop and living at home.

Lokolo

bendix wrote: »

Not to mention the educated and the illiterate.

A lot of people I go to uni don't know the different between they're, their and there..... I am pretty sure limiting university education won't change the fact that there are illiterate people out there.

Howver, I agree that the OP is stretching a bit. It might make student LL more risky with less students, but thats it.