Boost for first-time buyers in Scotland as deposits fall with house prices

TSB report shows that in Scotland first-time buyers paid less for a deposit from January to March than the last three months of 2022.

By Jacqueline Wake Young

June 7 2023, 11:45 am

Average house prices fell between the last quarter of 2022 and the first quarter of 2023 and deposits reflected that.

Deposits for first-time buyers in Scotland have decreased as the average price of a first house fell by 8%, making it easier to get on to the property ladder.

New data from TSB shows deposits for first-time buyers in Scotland decreased to £31,261 in the first quarter of this year as the average price of a first home was 8% lower than the fourth quarter of 2022.

Across the UK as whole, the average deposit for first-time buyers dropped 3% to £44,363.

The research from TSB shows that in Scotland, first-time buyers paid less for a deposit from January to March than the last three months of 2022.

Deposits for first-time buyers in Scotland have fallen.

The average purchase price of a first home in Scotland was £161,840, equating to a deposit of 19% of the average property value.

At a UK level, the average purchase price of first-time properties fell nearly 5% to £226,939 while the average deposit of a first-time buyer was down 3% from £45,871.

The research also helped to reveal more about the demographic of buyers, showing that in Scotland first-time buyers were younger than the UK average.

In Scotland, the average age of first-time buyers was 32, while at a national level, the average age was 33, remaining consistent with the previous quarter.

The average age of a first-time buyer in Scotland is 32, a year younger than the national average.

Roland McCormack, Director of Mortgages at TSB said: “The onset of spring usually brings with it a flurry of property listings, but first-time buyers looking to buy in 2023 are navigating a complex environment.

“Buying a house will typically be your biggest investment so take your time and get advice before you take your first steps onto the property ladder.”

The average price of a first home in Scotland was £161,840 with a deposit of 19% of the average property value.

TSB offered some top tips for first-time buyers when looking for a first home

Think about your budget

Start saving as soon as you are able to put money aside. Regular, consistent savings will help demonstrate you can afford a mortgage whilst building up your deposit.

A larger deposit might mean that the rate charged on your mortgage comes down slightly, but you need to weigh this against the time it will take to save more.

Think about your credit score

Your credit score plays a huge role when applying for a mortgage. You can always review your credit score on free websites like Experian or Equifax.

To improve your credit score, make sure you’re on the electoral role and if you have debt on your credit card, pay off any debt by making regular minimum monthly payments.

Late payments or failing to make payments will have a negative impact on your credit score.

Think ahead

Research location, prices, and overall budgets for moving and decorating. Think about commuting costs and if you could get more for your money if you moved further out.

Seek help

To help you work out what you can afford, use online tools or speak to a reputable mortgage adviser/broker who can help you understand how much you could borrow and the how much deposit you’d need.

Be patient

Remember that taking out a mortgage will probably be your largest ever financial commitment when buying your dream home. Consider all your requirements first before jumping in.