Students: Loans
The question
To ask the Chancellor of the Exchequer, if her Department will make an assessment of the potential impact of Plan Two Student Loans on people’s ability to afford housing.
Answered by James Murray
The Government is committed to improving the affordability of housing, and making the aspiration of home ownership a reality for as many households as possible.
Student loan repayments are taken into account as part of affordability assessments for mortgage applications, but student loans are very different from a mortgage or credit card debt, as repayments are determined by income, not the amount borrowed. For example, a Plan 2 graduate earning £30,000 will repay only around £4 a month in FY2026–27.
The most sustainable long-term method to improve housing affordability and help people into homeownership is to increase the supply of housing. This Government has recommitted to delivering 1.5 million homes over this Parliament.
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