A new study has shown that Scottish homeowners moving into new properties are witnessing the largest price increases in Britain.
Figures from the Bank of Scotland showed the average price paid by those moving home had increased by 54%.
Property "second steppers"
The Bank of Scotland study found that the average price paid by people moving home was 54% higher than ten years ago.
These moving homeowners, referred to as “second steppers”, were paying an average of £170, 534 for a property in 2013 where they were paying just £110, 952 on average in 2003.
In June 2013, a typical second home was 3.9 times the gross annual average earning. While this is an improvement on June 2012, it still shows a massive decline from 2003, when 2.6 times the average earnings was most common.
Housing economist for the Bank of Scotland, Nitesh Patel said:
“Housing affordability for the typical second stepper in Scotland has marginally improved in the past year. Nonetheless, there are many potential second steppers who are still in their first home [and] many of these homeowners may still be unable to move due to having either very low, or negative, equity in their homes."
Which Scottish property owners are most affected?
Property owners who want to move onto their second home will have bought their first property in 2008. These homeowners will have an estimated £13,985 of equity in their current property which equates to 10% of the cost of an average semi-detached property.
In the first half of this year, people moving home made up 56% of the total property buyers in Scotland - the smallest proportion for 12 years.
Experts believe this is a result of people finding it hard to get mortgages in the current economy.
Find out more about the largest price increases in Britain
- Homemovers in Scotland face biggest prices increase - BBC news story on the cost of moving in Scotland.
- Homemover prices up 54% in decade - The Paisley Daily Express highlights the 54% increase since 2003.
- Second steppers" costs on increase - The Herald looks at the "second stepper" issue.