Students seeking higher education this year will be the first to incur up to £9,000 in annual tuition fees, under new funding arrangements.
Higher tuition fees will almost certainly result in more students with outstanding debts, some dragging on for many years as the graduate's pay increases.
Latest figures from Royal Bank of Scotland have revealed students with high loans are more likely to experience problems when applying for and funding a mortgage.
According to the research, the average student loan repayment will erode up to 7% of a potential first-time buyer's savings for a deposit. Outstanding student debt adds at least three months to the time it takes to save for a 10% deposit.
Sylvia Waycot, finance expert at Moneyfacts.co.uk, said: "If, due to student debt, former students are unable to get onto the housing ladder until much later in life, it will create a knock on effect in the whole housing market.
"Not only will it aid the stagnation of the first-time buyer market but also that of the second movers market because they need first-time buyers to sell to.
"Retirees looking to downsize and capitalise their equity will also struggle. House buying as we all know, is a chain and every link is essential; weaken one and the chain snaps."
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