Scotland home buyers down three per cent in fourth quarter

In the fourth quarter:

Home buyers borrowed £2.2bn for house purchase, down 0.5 per cent quarter- on- quarter and three per cent year- on-year. They took out 16,800 loans, down one per cent compared to the previous quarter and three per cent on the fourth quarter 2015. First-time buyers borrowed £910m, down three per cent on the third quarter but up five per cent on the fourth quarter last year. This totalled 8,400 loans, down two per cent quarter- on- quarter but up five per cent year- on-year. Home movers borrowed £1.3bn, up one per cent quarter- on- quar- ter but down seven per cent compared to a year ago. This totalled 8,400 loans, unchanged quarter- on- quarter but down 10 per cent compared to the same quarter in 2015. Remortgage activity totalled £870m, down two per cent on the third quarter but up 10 per cent on the same quarter last year. This came to 7,200 loans, down one per cent quarter- on- quarter but up seven per cent compared to a year ago.

In 2016:

Home buyers borrowed £8.3bn for house purchase, down three per cent on 2015. They took out 63,500 loans, down two per cent compared to the year before. First-time buyers borrowed £3.4bn, up five per cent on the previous year. This totalled 31,400 loans, up five per cent on 2015. Home movers borrowed £4.9bn, totalling 32,100 loans, down seven per cent by value and eight per cent by volume on 2015. Remortgage activity totalled £3.4bn, up 10 per cent on 2015. This came to 27,900 loans, up six per cent in 2015. Carol Anderson, CML Scotland chair, commented: First-time buyer lending continues to show healthy annual growth in Scotland. Overall, the picture is of a steady market, with affordability comparing favourably with the UK as a whole.’

Affordability in Scotland

First-time buyers typically borrowed £99,800 (£135,000 in the UK overall), almost unchanged from the £100,000 average the previous quarter. The average household income was £33,500 (£40,200 in the UK overall), down from £33,700. The typical income multiple in Scotland of 3.03 (3.02 in the previous quarter) also compared favourably to the UK average of 3.56. Affordability metrics for home movers saw the typical amount borrowed this quarter was £140,000 (£172,500 in the UK overall), up from £135,300 the previous quarter. The average household income of a home mover was £50,700 (£54,900 in the UK overall), down from £51,000.

This meant the typical home mover income multiple in Scotland was 2.80, up 2.76 from the previous quarter and the UK average of 3.29.