The state of the Scottish housing market in four charts


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The roof above your head is one of the most basic needs, but for more and more Scottish people, it is one that is increasingly difficult to fulfill.

Soaring private rentals, a long waiting list for social housing and affordable housing prices are all stories that are familiar to tens of thousands of people.

Many problems in the housing sector began more than a decade ago with the financial collapse and subsequent recession, but does the current housing landscape fit our needs? And what can be done for that?

Over the next few weeks, BBC Scotland is investigating the country's housing sector, asking these big questions and explaining what is happening.

Does the housing market fail to bounce back from recession?

Buying and selling a house is not a national obsession like in the last decade.

As the graph shows, financial ruin caused sales volumes to fall freely and since then there has been little recovery in the number of transactions.

Experts cite a number of reasons for this, at least the affordability of homes and the availability of mortgages, but also the replacement of stamp duty, which was handed over to the Scottish Parliament in 2015, which hates the upper middle end. market.

Paul Hilton, chief executive of the ESPC property marketing company, said there are now fewer property values ​​entering the market, which have an impact on the food chain below.

He explained: "With fewer properties entering the market, the first and second stepper moving up the market found that there were not many choices and therefore did not put their own property on the market first. So, looking to find something before they sell [creates a] lack of supply. "

The lack of supply has also created what property experts call "lewati Efek" where those who have little choice but continue to build extensions to their homes to create more living space.

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The average house in Scotland costs more than £ 180,000

Is buying a home a realistic prospect for many people?

Much has been made of tempting price increases in London but Scotland has had a modest recovery in house prices since the financial collapse.

However, that does not mean homes are certainly more affordable for those who want to go up the property ladder.

In 1971, the average price of a house was about three times the average salary, but last year this ratio reached seven times the average salary.

John Boyle, director of research and strategy at Rettie and Co, said this had hit one part of society very badly.

He said: "This is a fundamental problem for young people. Lack of affordability – housing prices doubled between 2001 and 2007. Wages did not rise like that.

"The size of deposits needed, especially during the recession, rose from around 10% to 15/20%. That once again freezes many people out of the mortgage market."

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When it comes to renting, which city is the best?

There has been an almost double increase in recent years for those hiring from private landlords and most people in this category have seen their monthly accommodation costs soar.

The surge in prices has affected all types of property and is most felt in cities.

Data from the private Citylets rental portal shows Edinburgh has witnessed the largest increase in rental prices. In 2008, the average rent in the city – for all types of property – was £ 747 but a decade later it had reached £ 1,062.

During the same period, Glasgow saw average rental prices jump from £ 567 to £ 749.

Aberdeen is the only city that experienced a decline in average prices, but that was mainly due to a decline in oil and gas.

Increased rental demand is partly driven by a lack of homes for sale and people cannot get a mortgage as easy as it used to be.

And the prospect seems to indicate that leases will continue to increase, with the Royal Institution of Chartered Surveyors expecting leases to rise by 15% in 2023.

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Who built a new Scottish house?

The explosion of post-war housing means that 50 years ago, more than half of Scotsmen lived in council houses.

Today's picture is very different because nearly two-thirds of Scotsmen own their own homes, 22% rent social housing and 15% live in private rental homes.

But what about those who want to join this special party?

About 157,000 households were included in the council housing waiting list – down 22% from 2008 – but the complete picture was incomplete because the available data did not cover all areas of local authority.

Elsewhere, new private buildings have failed to recover to pre-recession levels with builders adopting a more cautious approach to development.

This has frustrated many households in their frustration at the purpose of moving to a new home.

The Scottish Government shows 80,000 affordable homes have been sent since 2007 and the rate of progress has improved – 5,340 socially rented homes sent in 2018 were a 19% increase from the previous year.

But the number of new homes is struggling to keep up with demand.

More than 400,000 more people live in Scotland today than they did in 2001 and the way we live is changing, with almost a third of people now living alone – increasing pressure on housing supplies.


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