Scotland suffers property crunch
The UK housing market could soon reach a stalemate as families are unable to cope with the rise in mortgage payments that would be needed.
In 265 of the 276 UK towns surveyed, Experian found that moving up the ladder is as difficult as buying in the first place.
The difference in cost between an average one or two bedroomed home compared to a three to four bedroom property is 50% or more in 96% of UK towns
This gap is even more profound in Scotland. In the nation’s central belt, particularly around Glasgow, the cost of a larger property was at least double that of a one or two bedroom home in five locations – East Kilbride (123% more), Clydebank (122%), Paisley (114%), Greenock (109%) and Hamilton (100%).
Across the whole UK the Y026 postcode area – largely villages to the north of York – had the largest percentage difference between a smaller home and a family home at 256%, equivalent to £275,000. This is followed by the GU3 postal district between Aldershot and Guildford where there was a 223% difference.
Jonathan Westley, managing director of Experian’s Consumer Information Services UK&I, said: “The current housing squeeze is not only impacting on first-time buyers, but also second-time buyers; often people who have growing families and need more space. For families in some locations this can mean a choice between staying put or moving to another area in order to move up.
“Getting that first foot on the ladder is an important step, but moving on to a larger home can be as challenging, particularly given the shortage of housing in some areas and the increased focus on affordability in mortgage lending rules.”