The number of first-time buyers in Scotland is at a seven-year low, having fallen by 35% in the last year, according to new data from the Bank of Scotland.

Figures revealed that in the first six months of 2020 there were 10,158 first-time buyers in Scotland, falling from 15,570 over the same period in 2019, as many potential homeowners reconsidered their options in the wake of the coronavirus pandemic.

This is the lowest number of buyers taking their first step onto the property ladder since 2013, when there were 10,090 registered first-time buyers.

The Bank of Scotland’s analysis also revealed that the cost of a first home has risen by 42% in the last decade, with the average price of a first-time buyer property in Scotland increasing from £108,774 in 2010, to £154,449 today.

This compares to an average 34% rise for home-movers, with Scottish first-time buyer properties seeing a 4% rise in the last year alone.

Scottish first-time buyers are also putting down record deposits, averaging £31,257 in 2020, which is 27% higher than 2010. However, deposits as a percentage of the property price continue to slide from their peak of 23% a decade ago, to 20% today. The Bank highlighted that the average deposit for a first-time buyer in Scotland is also a third less than the UK average of £47,059.

Bank of Scotland mortgages director, Graham Blair, commented: “While a number of first-time buyers were unable to take their first step onto the housing ladder during lockdown, we are already seeing activity levels growing as buyers kick off their property searches once again and look to make the most of the Government support available.

“With properties in the capital costing more than five times the average local salary while other areas remain affordable, the challenges facing first-time buyers are heavily influenced by where in the country they are house-hunting.”

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