First-time buyers in Scotland need £25,000 more than 2016 to get on property ladder

House prices for first-time buyers in Scotland have been increasing by £14 per day on average, with those hoping to buy a home needing over £25,000 more than they would have in 2016 to get on the property ladder.

Data from Direct Line Home Insurance, using Office of National Statistic figures, found the average first-time buyer in Scotland is now paying £139,159 for their first property – a £25,639 rise from the amount they would have paid on average six years ago.

The Orkney Islands had the fastest growing first-time buyer prices, with a 44.1 per cent rise between 2016-21. East Lothian experienced a 36.5 per cent increase, closely followed by Edinburgh with a 34.9 per cent jump in prices.

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First-time buyers in Glasgow saw an increase of 33.7 per cent over the five-year period, with Midlothian rounding off the top five with a 30.9 per cent rise.

House prices for first-time buyers have been increasing in Scotland.House prices for first-time buyers have been increasing in Scotland.
House prices for first-time buyers have been increasing in Scotland.

Those five councils averaged a house value of £132,951 in 2016, climbing by £47,434 to £180,385 in 2021 – an increase of 36 per cent.

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Across Scotland on average, house prices for first time buyers have risen by 23 per cent from £113,52 to £139,159 – an increase of £25,639.

In the UK the average first-time buyer faced paying £223,751 for a property last year.

The North West of England has seen the greatest percentage increase in first-time buyer prices, rising by 35 per cent (£43,812) over five years to 2021.

London remains the most expensive first-time buyer market.

A Direct Line Home Insurance spokesperson said “Prices for first-time buyers (FTB) in Scotland have increased rapidly in line with much of Great Britain.

“What is especially noteworthy is the areas where these prices are rising at the greatest rate, as the Orkney Islands has seen the second highest increase across all of Britain.

“These changes appear to match the movements of 30-39-year-olds, which suggests rising prices in Scotland are being driven by a surge of younger people creating FTB hot-spots.”

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Stephanie Millar, housing spokesperson for Citizen Advice Scotland, said: “This is one of many areas in which the cost of living is increasing rapidly for people across Scotland. We would urge people who are in financial difficulty to contact their local CAB as there may be ways we can help boost your overall finances.”



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