Seven in 10 (70%) of young people aged 18 to 40 say their student loan makes it harder to save for a property deposit (equivalent to more than 1.5 million), OneFamily reveals.

With both high rents and bills, as well as student loan repayments, OneFamily explains many are stuck in the ‘rent and repay trap’, as high essential costs are making it more difficult to put aside enough money to get out of this cycle and buy a place of their own.

Data found almost a third (29%) of all those with a student loan feel their student debt is holding them back from achieving their life goals.

Meanwhile, more than a quarter (27%) regret going to university all together because of the amount they owe.

The research also found that, if their student loan was written off, almost all those saving for a home (99%) said they would put at least some of it towards this goal.

Gen Zs are particularly feeling the crunch, as almost half (48%) say they feel their student loan limits their financial options, compared to nearly a third (29%) of Millennials.

Two in five (40%) of Gen Zs are worried about their student loan, compared to just over a quarter (26%) of Millennials.

OneFamily personal finance champion Beth Tait says: “There are already a huge number of barriers making it challenging for young people to buy their first home. It’s a big life goal and more needs to be done to help people achieve it.”

“Right now, thousands are stuck in a ‘rent and repay’ trap – juggling high costs, as well as their student loans, making it difficult to put aside much at the end of the month.”

“It’s worrying to see so many feeling stuck in a cycle that is difficult to break out of. There are solutions out there, like the lifetime ISA, to help young people manage their money and reach their life goals. But there is still much more work to do in terms of financial education and resources to help this generation save and build financial resilience.”