You are here: Home - News -

Scots find it easier to get foot on property ladder

by:
  • 14/03/2002
  • 0
Borrowers in Scotland are continuing to benefit from the low house price, low interest rate environm...

Borrowers in Scotland are continuing to benefit from the low house price, low interest rate environment north of the border, according to Bank of Scotland (BOS).

House prices in Scotland increased by an average 5%, compared to 12% in the UK. With the same access to low rate mortgage products and high income multiples, Scottish borrowers are finding it easier to get a foot on the property ladder than those in the rest of the UK.

According to BOS, the average house price in Scotland stands at a multiple of 2.7 times average earnings. This is well below the ratio of 4.0 times average earnings seen in the UK. BOS figures say a first-time buyer in Scotland typically spends 14% of their gross earnings on mortgage payments ‘ compared to 16% for the UK as a whole.

Martin Ellis, group economist at HBOS, said: ‘History shows the housing market in Scotland is far more stable than the market south of the border and typically avoids the booms and busts of England. The steadier pace of house price growth in Scotland over the past few years means residential property represents remarkably good value for homebuyers across most of the country.’

Edinburgh is the exception to Scotland’s trend and is one of the UK’s housing hotspots. Ellis said Edinburgh’s current house price rise is down to the city’s economic prosperity, due largely to its success in the financial services sector and the establishment of the Scottish Parliament.


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
As easy as…

With so much jargon used in the non-conforming market, brokers will need to give borrowers guidance to help them through...

Close