29% plunge in first-time home buyers

THE number of first-time home buyers in Scotland has fallen by almost a third in the past year.

High interest rates, inflation and soaring prices deterred many from entering the market.

in the first half of 2023, 10,488 first-time buyers purchased a property compared with 14,850 in the same period in 2022 – a decrease of 29 per cent.

it is the lowest figure since 2020, when it was only 9,600 due to the pandemic, according to the Bank of Scotland.

Graham Blair, the bank’s head of mortgages, said: ‘With prices in Scotland up 5 per cent in the last year, home ownership is still the aspiration of many. However, higher interest rates and inflation at levels not seen in a generation put the brakes on the market in the early part of this year.’