Housing affordability in Scotland is better in Scotland than almost any other part of the UK, according to research by the Halifax.
This year prices in Scotland had a price to earnings (PE) ratio of 5.3, bettered only by Northern Ireland at 5.2. That compared with a UK average PE of 7.5 and London’s 10.8.
The Halifax report found prices in Scotland had increased by £68,959 to £187,553 in the last 10 years.
For local authority areas outside London, Renfrewshire experienced the second largest increase in prices over the decade, up 144% from £64,565 to 3157,440. Aberdeen was up 137% from £84,740 to £200,603 while East Ayshire was up 133% from £55,737 to £129,898. Argyll and Bute was up 121% fro £76,978 to £170,485.
Price to earnings affordability worsened everywhere. East Ayrshire is Scotland’s most affordable at 3.0, with North Ayrshire at 3.3, South Lanarkshire at 3.6, Renfrewshire at 3.4 and North Lanarkshire 3.6.
Halifax managing director Russell Galley said: “The rise in house prices in London since the turn of the century is well documented, and a sharp decrease in affordability just shows how quickly the market has moved. Conversely, there are bargains to be had elsewhere such as in the north, Scotland and Northern Ireland where prices have been slightly more subdued and properties compared to earnings are comparatively affordable.
“A renewed focus on housing policy and increased infrastructure investment aimed outside the south east, for example, may go some way to rebalance the differences.”