Families help Scots to own property

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Family spirit is helping more Scots get on the property ladder compared to the rest of the UK, according to a survey by Yorkshire Building Society.

Nearly double the amount of Scottish first-time homeowners received help from their parents (14%) compared to the rest of the country (8%).

Other key findings from the Yorkshire’s survey include:

With the typical first-time buyer in Scotland putting down a deposit of £22,032, 34% say they feel that house prices (cost of average Scottish first home – £107,632) are too high.

Almost half (43%) of Scottish potential first-time buyers are striving to save for a deposit through regular savings (7% more than the national average) and 17% put away £201-£300 each month compared to 15% in the rest of the UK.

Potential first-time buyers in Scotland typically save £206 per month which means that if they put this into the typical instant access account, it would take them six years and nine months to raise their deposit (UK average – eight years and five months).

Once they establish the savings habit it appears to be one for life, and far more Scots intend to carry on saving once they have bought their first home (80% compared to 63% nationally).

Scots are also more likely to live with family while saving up for a first home, with 14% of Scottish potential first-time buyers living with parents or relatives compared to a national average of 10%. Half of those who live with family do not have to pay rent (7% in Scotland compared to 5% in the rest of the UK).

The important role that family plays is further highlighted by the fact that the majority (85%) of first-time buyers in Scotland bought their first home to provide somewhere to live for their partner and children/future children (82% – UK).

The typical Scottish first-time buyer prefers security and the highest percentage choose a long-term fixed rate (29%) followed by a standard variable rate (18%) and a short-term fixed rate (17%).