Highest number of Scottish first-time buyers since 2007

First-time buyers also borrowed more during the third quarter of 2016 than any other quarter since CML records began.

Affordability metrics for first-time buyers in Scotland remain better than for the UK overall.

The typical amount borrowed this quarter remained unchanged from the previous quarter at £100,000 (£134,900 in the UK overall), and the typical average household income of a first-time buyers increased slightly from £33,600 to £33,700 (£40,500 in the UK overall).

This meant the income multiple in Scotland was 3.02 a slight decrease compared to 3.03 the previous quarter and lower than the UK average of 3.54.

Affordability metrics for home movers in Scotland similarly remain better than for the UK overall. The amount borrowed this quarter was £135,300 (£172,800 in the UK overall), down from £139,500 the previous quarter.

The typical average household income of a home mover was £51,000 (£55,200 in the UK overall), up from £49,700. This meant the income multiple in Scotland was 2.76, down compared to 2.84 the previous quarter and lower than the UK average of 3.27.

In total, Scottish home buyers borrowed £2.2bn for house purchase, up 5 per cent quarter-on-quarter but down 5 per cent year-on-year. They took out 17,100 loans, up 5 per cent on the previous quarter but down 4 per cent compared to the third quarter 2015.

First-time buyers borrowed £940m, up 3 per cent on the second quarter and 6 per cent on the third quarter last year. This equated to 8,600 loans, up 4 per cent quarter-on-quarter and 5 per cent year-on-year.

Home movers borrowed £1.3bn, up 6 per cent quarter-on-quarter but down 11 per cent compared to a year ago. This totalled 8,500 loans, up 6 per cent quarter-on-quarter but down 12 per cent on quarter three 2015.

Remortgage activity totalled £890m, up 6 per cent on the previous quarter and 11 per cent on the same quarter in 2015. This came to 7,300 loans, up 4 per cent quarter-on-quarter and 11 per cent compared to a year ago.

Carol Anderson, CML Scotland chair, said: “First-time buyers continue to be a key driver in the market with more loans advanced to new home-owners than any quarter since 2007. This quarter also saw a four year high in remortgage activity and quarter-on-quarter growth in home movers so all lending types have performed strongly over the summer months.

“This is the first quarter post the EU referendum and the market appears resilient so far. It may take time to fully gauge the full impact but currently the Scotland market is in good shape and open for business moving forward.”