According to recent reports the average amount of deposit that is required by first time buyers in Scotland has increased by a shocking 154 percent since 2007.
Figures show that first time buyers in Scotland now need an average of £24,573 in order to be able to put a deposit down for a property and get onto the property ladder. This comes after lenders increased their deposit requirements for first time buyers over the past couple of years as a result of the global financial crisis.
This means that compared to 2007 the average first time buyer in Scotland had to find over £15,000 extra in order to be able to put down a deposit on a home based on the increasing demands of mortgage lenders.
The research was conducted by Hometrack, with officials from the firm stating that as a result of resilient house prices in some parts of Scotland coupled with severe mortgage restrictions from lenders many first time buyers who did not have a large amount of savings were pushed out of the property market.
Since 2007 the average quartile property price in Scotland was found to have increased by 1.6 percent according to the study, but in the same period the average deposit required by first time buyers increased by 154 percent. Just two years ago the average deposit required by Scottish first time buyers was less than £10,000.
It has now increased to nearly £25,000. It is thought that deposit levels for first time buyers in Scotland have risen by more than any other place in the UK, with the average increase showing in England and Wales standing at 129 percent.
An official from Hometrack stated: “The fact is that the average mortgage for first-time buyers has gone down to 75 per cent loan-to-value, so even while prices have fallen, that has been offset by the need for a larger deposit.”