The team at Coulters Property have looked into the housing landscape for first-time buyers to discover how much you would need to be able to afford a 10% deposit around the country, how much this is as a percentage of average annual income, and how this has changed over the last 20 years.
https://www.coultersproperty.co.uk/first-time-buyer-changes
Scotland First Time Buyer Landscape (1999-2020)
| 1999 | 2020 | 10 YEAR DIFFERENCE (£) | 10 YEAR DIFFERENCE (%) | |
| House Price | £49,924 | £152,469 | £102,545.00 | 205.40% |
| Deposit | £4,992 | £15,247 | £10,255 | 205.43% |
| Earnings | £16,914 | £30,000* | 13,086 | 77.37% |
| Deposit % Earnings | 29.50% | 50.70% | 21.20% |
*2019 earnings data used
You can clearly see that in Scotland, house prices have risen by 205.40% but earnings have only risen by 77.37%. The deposit as % of earnings has increased by 21.20%.
How Has Housing Affordability Changed in the UK?
- In 1999, the average house price in the UK was just £77,961. Fast forward twenty years and that figure has almost trebled, to £230,735.
- At the same time, the average income has also increased, but only from £17,803 a year to £30,353, an increase of 70%.
- In 1999, a 10% deposit would have worked out at about 43.8% of your annual salary, these days, that figure has risen by about three quarters to 76%.
You can see the full research here.