Scots looking to buy their first home face sky-high deposits and house prices, a new report has found.
While affordability can depend on the area that you live in, prices were trending upwards across the country last year, according to research carried out by the Bank of Scotland.
Among Scotland's most affordable areas were West Dunbartonshire and Inverclyde whilst the most expensive places to buy were found to be East Lothian and Aberdeen City.
An average house was priced at an eye-watering £189,428 last year, which may explain why the number of first-time buyers dropped 11 percent following 2021's record high. Despite this, those buying their first house still make up half of all home loans.
First time buyers faced an average deposit of 22 percent - that's £41,442 - to get onto the Scottish housing ladder in 2022.
House prices were £173,970 on average in 2021, meaning that prices rose nine percent. Deposits, unfortunately, have also risen from 38,468 on average in 2021 to 41,442 in 2022 - an eight percent rise.
The research additionally revealed that the average age of buyers entering the Scottish housing market is 31.
However, there were found to be some locations which benefited from lower house prices and an average salary in the area which could make it slightly easier for people to get onto the property ladder.
Most affordable areas in Scotland
Local Authority |
House Price to Average Earnings ratio |
West Dunbartonshire |
2.7 |
Inverclyde |
2.8 |
North Ayrshire |
2.9 |
East Ayrshire |
3.0 |
South Ayrshire |
3.1 |
Clackmannanshire |
3.1 |
Stirling |
3.2 |
North Lanarkshire |
3.2 |
Renfrewshire |
3.3 |
South Lanarkshire |
3.4 |
The most affordable area for first-time buyers in Scotland, as well as the UK, was found to be West Dunbartonshire.
The Bank of Scotland compared the average earnings of £37,910 to the average first-time buyer house price in the area, which is £103,957.
They found that those getting started on the property ladder need to borrow roughly 2.7 times the average salary to get on the property ladder.
Least affordable areas in Scotland
Local Authority |
House Price to Average Earnings ratio |
East Lothian |
4.5 |
Aberdeen City |
4.4 |
City of Edinburgh |
4.4 |
Aberdeenshire |
4.4 |
Midlothian |
4.3 |
Dundee City |
4.1 |
Highland |
4.1 |
Moray |
3.9 |
Scottish Borders |
3.9 |
West Lothian |
3.9 |
The least affordable area in Scotland, according to the Lloyds Group-owned bank, is East Lothian, where first-time buyers face average house prices of 4.5 times Scottish average salaries.
Graham Blair, Mortgages Director at the Bank of Scotland, commented: "There was a real spike in demand for Scottish homes in 2021 which means it's unsurprising that the amount of properties bought by first-time buyers fell back in 2022, by 11%.
"Nonetheless, those getting on the property ladder for the first time still make up half of all home loans, and they're paying almost £190,000 to get that first property.
"With average deposits raised now over £40,000, it's still a significant challenge for people, although Scotland does have some of the most affordable places to buy in the UK."
Don't miss the latest news from around Scotland and beyond - sign up to our daily newsletter here .
