Number of f irst-time buyers up by 90pc in a decade

THE number of first-time buyers in Scotland has rocketed by more than 90 per cent in a decade, new figures reveal.

More than 33,000 people bought their first home last year, compared with just over 17,500 in 2009. The 2019 figure also represented a year-on-year rise of 3 per cent.

First-time buyers account for 50 per cent of all property purchases made with a mortgage in Scotland, up from 38 per cent a decade ago.

Experts say the rise is mainly due to Scotland remaining affordable, aided by government incentives such as the Help to Buy scheme.

But Bank of Scotland research suggests those wanting to get on the housing ladder are still being squeezed out of more expensive areas such as Edinburgh and East Lothian.

The bank’s operations director, Ricky Diggins, said: ‘Scotland remains one of the most affordable areas in the whole of the UK, with both average prices and deposits much lower than the overall average across the four nations.

‘That only tells part of the story though, with significant differences seen in many local areas, and locations such as Edinburgh and East Lothian looking more challenging for those aiming to take that first step onto the property ladder.’

The Bank of Scotland First-Time Buyer Review

‘Scotland remains one of most affordable areas’

revealed that the average price paid for a typical first home in Scotland has gone up by 38 per cent (£41,687) over the decade, from £111,402 in 2009 to £152,728 in 2019. The average deposit put down by a first-time buyer increased by 13 per cent over the same period, from £26,427 to £29,950.

The UK average first-time buyer price was £231,455 last year, while the average UK deposit for first-time buyers was £46,187.

Only Northern Ireland (£136,850) and the North of England (£136,104) had lower prices than Scotland overall.

The most affordable local authority district in Scotland is North Ayrshire, where the average price paid for a first home is £107,198, or 3.3 times the local gross average annual earnings of £32,866.

Least affordable is Midlothian, with an average property price of £174,033, at 5.2 times the average gross annual earnings of £33,319.

Highest prices are seen in Edinburgh, where the £211,307 first-time buyer average is 5.1 times the average gross annual earnings.

In the past year alone, the average price paid by a first-time buyer in Scotland rose by 8 per cent, while the average deposit was up by 11 per cent.