The growth of house prices has outstripped the growth of wages in all but three local authorities in Scotland over the last 10 years (also the only three in the UK): Moray and Clackmannanshire saw marginal improvements in their price to earnings ratio (P/E ratio), while in East Ayrshire there was no change. However, based on a benchmark of no more than 4x income for a house price to be considered ‘affordable’, 17 of 29 local authorities in Scotland are now ‘unaffordable’, up from just seven in 2011. In Scotland’s least affordable location, the City of Edinburgh, homes are more than twice as affordable as the UK’s least affordable, Brent in London, where the average FTB home costs 12.3 times the average income, and below the UK average of 6.3x. Nine of the ten most affordable areas to buy a first home are in Scotland, with only Allerdale in North West England preventing a clean sweep of Scottish local authorities (LAs). Since then, FTBs have got older and the average has diverged slightly, with it now standing at 31 in Scotland, compared to 32 for the UK.Ĭompared to the rest of the UK, affordability for first-time buyers in Scotland is relatively good. In 2011 the average age was 29 for both Scotland and the UK. The research also looked at the age of buyers entering the market. Source: Bank of Scotland, 12 months December 2021 Table 2: First-time buyers: Average price and deposit by UK region, 1 year change 2021 The UK average FTB home was £264,140 - up 3%. The average first home in Scotland now costs £166,919, up 8% on 12 months ago, while the average deposit grew by 4% to £37,038. Table 1: Number of First-Time buyers in Scotland.įirst-time buyers as % of all home purchase loans Having fallen in 2020, the number of people buying a first home jumped by almost a quarter in 2021 – rising 24% to 35,627. Since 2009 the number of people getting on the housing ladder in Scotland has more than doubled. The review also identified that the average Scottish FTB in 2021 was 31 years old, paid £166,919, and put down a deposit of £37,038 (22%). Clackmannanshire is both Scotland and the UK’s most affordable area for first-time buyers (FTBs), according to new analysis from Bank of Scotland.
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