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First-time Buyers

First-time buyers in Scotland pay £22,000 less

Mortgage Solutions
Written By:
Mortgage Solutions
Posted:
Updated:
19/09/2012

First-time buyers in Scotland are getting better value for money than their counterparts in England and Wales, according to the LSL Scottish House Price Index.

The survey found that first-timers north of the border pay an average of £22,000 less than those in England and Wales, with Scottish sales in the first seven months of the year up 9% on 2011 levels.

The value of the average property in the country continued to fall, down to £145,622 in July, helping young buyers get onto the property ladder.

Property in Edinburgh is now the most expensive in the country, growing 6.7% year-on-year to £224,754.

It replaces Aberdeenshire as the most sought-after area of the country, where prices in the county fell 7.7% to £194,994.

Richard Sexton, director of e.surv chartered surveyors, commented:

“Life for first-time buyers in Scotland has improved markedly this year. There have been 1,100 more loans to new buyers so far this year than in the equivalent period last year.

“This has helped push up activity throughout the whole market, with July seeing 1,529 more sales than June. While it isn’t all sunshine and roses just yet, first-timers in Scotland can at least take solace from the fact life is comparably better for them than their English and Welsh counterparts.

“It’s been easier for Scottish buyers to access mortgages this year, and, given we’re in the middle of a double-dip recession, it augurs well for the future. New buyers in England and Wales have to stump up £22,000 more on average than Scottish buyers to get a loan, which is a major reason why the Scottish first-timer market is moving more freely.

“Although first-timer numbers are still only at 46% of what they were before the 2008 financial crisis, increased activity from new buyers has helped keep house prices broadly flat. Some may believe that prices have fallen about as low as they can and that the only way they can head now is up.”


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