"We’ve seen a big uplift in the number of first-time buyers in Scotland over the last decade, and they continue to account for around half of all purchases."
Since 2009, first-time buyers have increased their market share from 39% to 51% of all home purchases.
Northern Ireland has seen the biggest growth since 2009 in percentage terms, up by 151% (4,380 to 11,013), while London recorded the slowest growth, up by just 43% from 29,250 to 41,712.
The average first-time buyer price in London has risen by 104% (£231,278) over the last 10 years to £453,385. Northern Ireland meanwhile has seen the lowest growth, up just 12% from £122,699 to £136,850.
It’s a similar story with deposits, as the average amount needed by a first-time buyer in London leapt by 41% to £109,885, while in Northern Ireland, it actually fell by 26% from £34,356 to £25,317. The national average first-time buyer deposit over this time grew by 19% from £38,900 to £46,187.
The number of first-time buyers in Scotland has risen by more than 90% from 17,580 a decade ago to 33,558 in 2019.
The average price paid for a typical first home has grown by 38% (£41,687) in Scotland over the last 10 years to £152,728. Meanwhile, the average deposit put down by a first-time buyer increased by 13% over the same period, from £26,427 to £29,950.
By region, Burnley in the North West is now the most affordable area for local first-time buyers – calculated by comparing average earnings to average house prices – with a ratio of 3.1. This replaces East Ayrshire in Scotland.
The vast majority of the top 10 most affordable areas are in Scotland and Wales (including North Ayrshire at 3.3 and Merthyr Tydfil at 3.4), with only Pendle in the North West (3.6) also making the table.
The list of least affordable areas in the country is unsurprisingly dominated by London, with Hackney recording a house price to earnings ratio of 12.1, followed by Brent (11.6) and Lambeth (11.1).
Ricky Diggins, operations director at Bank of Scotland, commented: “We’ve seen a big uplift in the number of first-time buyers in Scotland over the last decade, and they continue to account for around half of all purchases. This shows just how important they are to the health of the Scottish property market, a situation that’s been helped by a number of factors, including Government schemes and continued low interest rates.
“Scotland also remains one of the most affordable areas in the whole of the UK, with both average prices and deposits much lower than the overall average across the four nations. That only tells part of the story though, with significant differences seen in many local areas, and locations such as Edinburgh and East Lothian looking more challenging for those aiming to take that first step onto the property ladder.”
