First Time Buyers "Locked Out" of Scottish Housing Market

In stark contrast to the upbeat reports of late, Shelter Scotland has reported that first time buyers are "locked out" of the market because of a lack of mortgages, and a shortage of affordable housing.

The report said the increased affordability brought on by falling prices has been cancelled out by the massive decline in house building in Scotland, along with the massive withdrawal of mortgage products from major lenders. The report also said that rising repossessions, unemployment and economic uncertainty have also deterred possible buyers.

"At a time when house prices are falling and interest rates are at historic lows, a new generation should be able to buy a house. Instead, a squeeze on lending is leaving people locked out of the housing market," said Shelter Scotland director Graeme Brown, in a report that revealed the number of first-time loans in Scotland at the end of last year was barely half the levels recorded the previous year.

The report cited the average deposit rocketing upwards to £20,000, 8 times what it was at the start of the decade, as another major contributing factor keeping many Scots from being able to buy their first home.

There has been several reports this year, on how Scottish house prices have not fallen by as far as other parts of the UK, this is also partly to blame for Scottish first time buyers being locked out of the market. But this is not a problem limited to Scotland. Throughout the UK it is widely thought that only people who can solicit significant financial assistance from parents and family members are able to get onto the first rung of the property ladder.

To combat the problem Deputy First Minister Nicola Sturgeon announced yesterday, that the amount of money the Scottish Government was making available to local authorities for council housing would be £50m, twice the previous figure.