High Level Summary of Statistics Trend Last update: Friday, May 15, 2009
House prices
Although not as acute as elsewhere in the UK, Scotland has experienced a marked upswing in average house prices since 2000. While Scotland is one of the most affordable regions in the UK in terms of house price to earnings ratios, there are still major problems of affordability in some areas, particularly for potential first-time buyers who may find the costs of owner-occupation prohibitive. The increase in real price is most pronounced in Edinburgh. However, all parts of Scotland, including rural areas, have experienced real price growth well above earnings growth, with national average house price to income ratios rising by 23% between 2002 and 2006.
More recently, there has been some indication that the market may be easing off somewhat (Table 592, Department for Communities and Local Government live tables on housing market), and the proportion of first time buyers is beginning to pick up from a low point in 2004, in part due to mortgage products becoming increasingly accessible and financially attractive in recent years.
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Source: Scottish Government Communities Analytical Services (Housing Statistics)
However, while house price growth has now begun to moderate, the relatively high level of house prices means that households now face greater obstacles in fulfilling aspirations toward home ownership. Recent changes in the mortgage lending market in response to fears of a debt crisis have also resulted in a reduction of the more attractive mortgage deals, and the most recent figures for 2007 do show a slight drop in the proportion of first time buyers. As affordability in the market sector has worsened, pressure has increased on an already stretched social housing sector.
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