Determinants of graduates' demand for housing

Abstract

During the early 1990s the number of UK graduates increased substantially while the number of young first time home buyers was diminishing and student loans began to replace maintenance grants. In the light of these changes, this paper examines the influences on home ownership based on a sample of 1991–95 Coventry University graduates. Significant explanatory variables are years of work since leaving university, household income, living with a partner, children and a lump sum inheritance or gift. Student loans, age, gender, house prices and relative buy/rent costs do not significantly affect the probability of home ownership.