Spiralling house prices are preventing first time buyers getting a foothold on the property ladder, with Perth and Kinross emerging as one of the least affordable parts of Scotland.
A ratio of 4.5 times a borrower’s income is regarded as the maximum that banks and building societies will lend but new figures show the average property in Perth and Kinross is 6.6 times average earnings.
The picture is slightly better elsewhere in Courier country — with Angus 5.3 times average earnings , Dundee (5) and Fife (4.6) — but with house prices rising at a much faster pace than earnings, the crisis looks set to deepen.
The union that represents many of the people affected by house prices outstripping its members’ incomes has called for urgent action to be taken.
Gary Smith, GMB Scotland secretary, said: “These figures show that a massive programme to build more houses, especially houses for rent, by the local authorities is absolutely essential in all parts of Scotland and has to get underway without delay.”
Anne Begg, manager at Perthshire Solicitors’ Property Centre (PSPC) said the area was still fortunate in the breadth of properties available from one bedroom flats to country houses.
“There is no doubt that many people still struggle to get a foot on the property ladder but there are also a number of financial assistance initiatives which can apply to house hunters throughout the area, including ‘Help to Buy (Scotland)’, where buyers can secure a home with as little as a 5% deposit and the LIFT scheme which is very active here in Perth,” she said.
“However, the awareness of these schemes can be limited so we’re holding a free event to explain some of them within PSPC at the end of the month, and hope to see some house hunters, who currently think they are priced out of the market, become home owners thereafter.”
Perth and Kinross Council insisted they were playing their part through their local housing strategy which aims to deliver 150 affordable units per year.
“To achieve this target the council has its own house building programme and works closely with social landlords and developers to deliver affordable houses across a range of tenures,” said a spokesperson.
Perth councillor and MSP Alexander Stewart blamed inaction by the Scottish Government for exacerbating the problem.
“It is very clear that the number of new homes that are being built has not kept pace with the growth of the population,” he said.
“Since the SNP first came to power in 2007, housebuilding has decreased by 40%.
“There is, fundamentally, a problem of supply, which is by far the biggest factor causing hard-working Scots to be priced out of the housing market.”
