Student loan rule change will see increased rental demand

30 2008
Thousands more graduates may choose to stay in the rented property sector as new credit history rules make it harder for them to obtain a mortgage.

Alongside the recent news that the interest on student loans is to be doubled, it has been announced that the amount borrowed to fund university studies will be put onto a graduate's credit file.

This could mean that lenders are even more reluctant to approve mortgages for first-time buyers, with the rental accommodation sector set to experience continued high demand.

According to Francis Ghiloni, marketing and business development director at mform.co.uk, "the average student can face debts of over £20,000 by the time they graduate, and their average starting salary is around £16,000.

"Given statistics like this, many students miss one or more of their student loan repayments, and this information will soon be made available to credit reference agencies and therefore the banks and financial services companies that use them."

At the same time, many observers are predicting that millions of professionals will opt to rent a property rather than buy one as they wait for the uncertainty in the economy to clear. ADNFCR-1219-ID-18446783-ADNFCR

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