West Coast PROPERTY G UIDE
Home buyers in Scotland up 25 per cent in the second quarter of 2017
In the second quarter in Scotland:
HOME buyers borrowed £2.5bn, up 35 per cent quarter-on-quarter and 18 per cent year-on-year. They took out 18,800 loans, up 30 per cent compared to the previous quarter and 15 per cent on the second quarter of 2016.
First-time buyers borrowed £1.1bn, up 29 per cent on the first quarter and 17 per cent on the second quarter last year. This totalled 9,500 loans, up 25 per cent quarter-on-quarter and 15 per cent year-on-year.
Home movers borrowed £1.5bn, up 39 per cent quarter-on-quarter and 20 per cent compared to a year ago. This totalled 9,300 loans, up 37 per cent quarter-on-quarter and 16 per cent compared to the same quarter in 2016. Remortgage activity totalled £900m, down seven per cent on the first quarter but up seven per cent on the same quarter last year. This came to 7,300 loans, down 10 per cent quarter-on-quarter but up four per cent compared to a year ago.
Carol Anderson, chairwoman UK Finance Scotland Mortgage Committee, said: ‘There were more home buyers in Scotland in the second quarter of 2017 than any other quarter since 2007. First-time buyers have been a key driver of this, with two years of year-on-year growth.
‘With an economic climate of low interest rates, government schemes and competitive mortgage deals, the Scottish market is in a good position and open to business going forward.’
Affordability in Scotland
First-time buyers typically borrowed £101,600 (£137,700 in the UK overall), up from £98,230 average the previous quarter. The average household income was £33,600 (£40,800 in the UK overall), down from £33,700 the previous quarter. The typical income multiple in Scotland was 3.09 (3.01 in the previous quarter), which compared favourably to the UK average of 3.58. Home movers borrowed an average of £141,100 this quarter (£178,200 in the UK overall), up from £139,500 the previous quarter. The average household income of a home mover was £51,000 (£55,100 in the UK overall), up from £50,000. This meant the typical home mover income multiple in Scotland was 2.84, up from 2.83 the previous quarter and the UK average of 3.37.