Londoners with student loans will be able to afford their own home 10 years after those without loans become homeowners, according to a September 2026 UK housing report. Only 28.2% of recent homebuyers were able to purchase without a loan attached, prompting experts at British Business Funding to calculate the student loan burden on homeownership across the UK.
In London, residents lose the most time settling their education debts, with 27 years required to save for a deposit. Low income is the biggest obstacle for residents of Bournemouth, who take home an annual net salary of £30.7K and save £3.1K a year after loan repayments. Oxford residents face the longest wait in the UK to afford a house even without student debt, needing 17.7 years of savings for a deposit.
How the figures were calculated
To work out how much education loans extend the path to homeownership, the study analysed local house prices, average annual income, and student loan repayment rules. From that data, researchers calculated annual savings after loan payments and the time needed to save for a deposit. The final ranking measures the gap between the timeline for those without loans and the timeline for those with student debt.
These are the top 10 cities where student loans delay buying a house the most
| City | Deposit needed (£) | Annual savings after loan (£) | Years to save with loan | Annual savings without loan (£) | Years to save without loan | Student loan penalty (years) |
|---|---|---|---|---|---|---|
| London | 105K | 3,901 | 27.0 | 6,135 | 17.2 | 9.8 |
| Cambridge | 93K | 3,619 | 25.6 | 5,469 | 17.0 | 8.7 |
| Oxford | 90K | 3,450 | 26.0 | 5,071 | 17.7 | 8.3 |
| Bristol | 68K | 3,488 | 19.6 | 5,160 | 13.2 | 6.3 |
| Bournemouth | 63K | 3,106 | 20.3 | 4,259 | 14.8 | 5.5 |
| Edinburgh | 57K | 3,461 | 16.5 | 5,109 | 11.1 | 5.3 |
| Portsmouth | 55K | 3,234 | 17.0 | 4,559 | 12.1 | 4.9 |
| Southampton | 51K | 3,296 | 15.6 | 4,706 | 10.9 | 4.7 |
| Cardiff | 52K | 3,137 | 16.6 | 4,332 | 12.0 | 4.6 |
| Manchester | 48K | 3,340 | 14.4 | 4,811 | 10.0 | 4.4 |
The complete research findings are available upon request.
London
Homeownership in London is delayed the most by education loans, with almost 10 more years needed to save for a deposit. The deposit required is £105K, calculated as 20% of the average home cost of £527.1K. Residents without student debt need 17.2 years to save that amount, but the wait extends to 27 years when university costs are factored in. This happens despite London having the highest income in the UK and the largest annual savings on the list, at £3.9K, underlining how costly the capital’s housing market is.
Cambridge
Cambridge ranks 2nd, with 8.7 more years needed to afford a home because of student debt. House prices are significantly lower than in London, but ownership remains out of reach for many due to the £92.7K deposit, again calculated as the standard 20% of the price. Cambridge residents earn the second-highest net income in the country at £36.3K, yet this only keeps the savings timeline under a decade.
Oxford
Oxford takes 3rd place, with the longest saving period in the UK even without a student loan, at 17.7 years. The mismatch between average house prices of £448.7K and annual net income of £34.5K means residents can save only £5K a year without student debt, falling to £3,450 with loan repayments. That adds 8.3 years to the deposit timeline, bringing the total to 26 years.
Bristol
Bristol ranks fourth, with student loans delaying homeownership by more than six years. Residents need just under 20 years to save for a £68K deposit, as annual savings amount to only £3.5K after loan payments. Even without student debt, the saving period remains lengthy, at just over 13 years.
Bournemouth
Bournemouth holds fifth place and has the lowest income among the top 10 cities. Local workers earn £37.8K in gross income but take home around £30.7K net. With annual savings of only £3.1K after loan payments, they need five and a half additional years to set aside the deposit compared with those free of student debt.
Expert comment
A financial expert from British Business Funding shared further context on how student loans affect homeownership: “When income-contingent student loans were introduced in the UK, the assumption was that graduates would earn significantly more than non-graduates, making the repayment straightforward. A third of graduates now report that their degree did not improve their financial situation, and the same respondents overestimated their starting salaries by an average of 33%. In 2026, there are very few well-paid career paths without higher education, but those who cannot afford it without loans won’t be able to buy a house for decades, too.”
The findings underline the lasting impact of student debt on housing affordability across major UK cities, particularly where high property prices combine with ongoing loan repayments to stretch saving timelines well into middle age for many graduates.