New research released on Thursday from leading housing and homelessness charity Shelter shows it is 65% harder for first time buyers to buy a house than ten years ago, and that overall house prices in Scotland for first time buyers have risen almost 180% in ten years.
The new figures show - despite recent reports that the Scottish property market could face a downturn - that buying a house for the first time is more unaffordable than ever.
The annual ROOF Affordability Index assesses housing affordability in a much more sophisticated way than most indices. It does this by comparing mortgage costs against household incomes, taking account of interest rate changes, and highlights the gap between what people can afford and the growing cost of housing.
-- Advertisement --
It comes as Shelter Scotland announces details of a summit to look at the prospects for the Scottish housing market. Professor Steve Wilcox, who compiled the ROOF Affordability Index, is one of the experts speaking at the Shelter event, 'The Scottish Housing Bubble', on May 22.
Archie Stoddart, director of Shelter Scotland, said: "Despite the column inches dedicated recently to a downturn in house prices south of the border, and a possible slow down in Scotland, this long term comparison shows the real story is that housing is out of the reach of many would-be buyers.
"Any fall in prices would be a drop in the ocean for those looking to buy in Scotland after an almost 180 per cent rise in prices over the last ten years. The stark reality for many first time buyers is that as mortgage lenders tighten their belts in the current financial climate, it will become increasingly difficult to buy."
The ROOF Affordability Index shows that in Scotland, while the average weekly income of working households has risen from £548 in 1997 to £851 now (a 55% increase) - the average first time buyer property has rocketed from £38,845 ten years ago to £108,446 at present (a rise of almost 180%).
(GK/JM)
