Over the past five years, the average price paid by homemovers in Scotland has grown by almost a fifth (18%) from £170,060 in 2011, to £201,470 in June 2016 – an increase of £31,410 according to the latest Bank of Scotland Homemover review. (See Table 1)
Higher house prices in their current homes have boosted equity levels for homemovers. The average deposit put down by a homemover in Scotland is £60,911 - equivalent to 30% of the average purchase price.
Housing affordability for Second Steppers improves in the past five years
Housing affordability for Second Steppers in Scotland (those still living in their first home but looking to take their next step up the property ladder) has improved over the past five years, falling from 6.6 gross annual average earnings in 2011, to 5.6 in 2016. This is calculated as the average price of a typical Second Stepper home less their current equity position1 as a ratio of average earnings.
Nitesh Patel, housing economist at Bank of Scotland said:
"It’s great news for those looking to move up the property ladder that the affordability of homes for Second Steppers across Scotland has improved over the last five years. Higher house prices are also helping homemovers put a bigger deposit down on their next home, which is good news for them but highlights the challenge for first-time buyers.”