House price for first-time buyers in Scotland 'rises by almost £10k'

The average house price for first-time buyers in Scotland has risen by almost £10,000, according to new statistics.

Figures published by estate agent comparison site GetAgent.co.uk indicates that the average price increased from £126,078 in 2020 to a sum of £138,921 the following year.

It marks a 10% rise in the average house price for first-time buyers – above that in other parts of the UK.

In comparison, prices grew by 4% in London (from £421,325 to £438,385), by 7% in the South East of England (from £260,836 to £280,257) and by 9% across the UK as a whole (from £199,251 to £216,836).

Whilst the cost in property prices has risen, the number of first-time buyers has also increased – attributable in large part due to the easing of lockdown measures in the first year of the coronavirus pandemic.

In Scotland, the number of first-time buyers grew from 28,740 in 2020 to 35,627 in 2021 – a rise of 6887 new buyers.

Across the UK meanwhile, the figure increased from 295,390 first-time buyers in 2020 to 397,232 the following year.

The total market value of the UK’s first-time buyers in 2021 sat at just over £86.1bn.

Scotland made up just under £5bn of the total market value of first-time buyers last year, with London accounting for close to £25bn in value.

Founder and CEO of GetAgent.co.uk, Colby Short, indicated that property values should “remain buoyant” due to the level of new housing stock failing to keep pace with demand.

Short said: “Despite house prices climbing to record new heights during the pandemic, the number of first-time buyers entering the market has climbed significantly on an annual basis and the overall level of market value they account for is huge, to say the least.

“Of course, this greater demand has pushed the cost of buying even higher but it’s clear that the aspiration to own our own homes remains strong, even in today’s generation who have become more normalised to long term renting.

“This bodes well where the ongoing health of the housing market, as it suggests that there is little sign of the buyer demand hopper running low anytime soon.

“With the level of new housing stock also failing to keep up, property values should remain buoyant, even if we do see the odd adjustment every now and then.”