First-time buyers suffer as house prices rise

By Niall Christie

House prices in Scotland rose by more than 3% in the last, pricing more first time buyers out of the market.

Scots now shell out £139,000 on average on houses, with more than a 16% deposit now standard for buyers across the country.

One of the major factors in this rise is the lack of properties up for sale in Scotland, with an increase in demand meaning that those who are deciding to sell-up are able to do so at a premium.

Caroline Young, spokesperson for the Solicitor’s Property Centre, said: “One thing that has been the case across Scotland is a shortage of properties for sale, which places high demand on those available for sale.

“This results in an increase in selling prices for in-demand areas, and faster times to sell.”

However, there have been encouraging signs for those looking to get a foot on the ladder, with a sharp fall in the number of buy-to-let properties leaving a gap in the market for low-cost, privately-owned housing.

The first two months of this year have shown a growing number of buyers are taking the plunge.

Paul Smee, director general of the Council of Mortgage Lenders, said: “Borrowers took out more loans to purchase a home in the first two months of 2017 than any year since 2007.

“This is down to strong first-time buyer activity which has consistently matched home-mover borrowing over the past six months, a trend not seen in the UK for 20 years.”

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