Scots First-Time Buyers Paying Average £139k

Stirling is the most affordable place in the UK for first-time house buyers, a report has found.

House prices

A home in city costs £136,000 - 2.9 times local average earnings.

The research by Halifax found first-time buyers make up nearly half of all house purchases financed by a mortgage but those taking their first step on the property ladder typically need to put down a £33,000 deposit.

During the first half of 2017, 47% of all house purchases with a mortgage across the UK were made by first-time buyers..

But the average price paid for a first home is at a record high of £207,693, Halifax found. The average first-time buyer deposit put down in the first six months of 2017 was £32,899 - equating to 16% of the purchase price.

Across Scotland as a whole, the typical price was £139,041 with a 16% deposit of £21,565.

That compares to a deposit of £106,577 (26%) for first-time buyers in London, £16,457 (14%) in Northern Ireland and £17,193 (13%) in Wales.

Across the UK, the number of first-time buyers reached an estimated 162,704 in the first six months of 2017, which is only 15% below a peak seen in the last boom in 2006, Halifax said.

Schemes such as Help to Buy, combined with low mortgage rates, have given aspiring home owners a helping hand in recent years.

The proportion of first-time buyers has grown from 44% since the launch of Help to Buy in 2013, Halifax said.

There are also signs of first-time buyers stretching their loans out for longer, beyond the traditional 25-year term, to cover higher house prices.

In 2016, more than half (56%) of their mortgage terms were for 25 to 35 years. In 2007 just over a third (38%) of first-time buyer mortgages were for between 25 and 35 years, Halifax said.

While Stirling was identified as the most affordable place for first-time buyers, the least affordable was Brent in London. A typical first-time buyer home there costs £459,499 or around 12.5 times local average earnings.

Halifax used figures from the Council of Mortgage Lenders (CML) and the Office for National Statistics (ONS) for the First-Time Buyer Review.

Martin Ellis, a housing economist at Halifax, said that for the third time in four years the numbers getting on the housing ladder in the first half of the year have exceeded 150,000 - "a level of momentum not seen since before the financial crisis".

He said: "High levels of employment, low mortgage rates and government schemes such as Help to Buy have also helped these numbers remain robust, as first-time buyers continue to form a fundamental part of the UK housing market."

Recently Played Tracks

To listen live, choose your preferred station:

Go

Stay tuned...

Watch heart TV

  • Now playing: The best feel good music

Heart VIP

Local

Autumn Weather

Find your local four day weather report here.

Listening To Radio Win With Heart

Make Heart the soundtrack to your day and you could be a winner with great prizes up for grabs throughout the day.

Shopping Our Advertisers

Find out more about some of the companies advertising on Heart Scotland- East.

Follow Heart on Twitter