Is the cost of a new house in Scotland out of your reach?

Buying property in Scotland has never been more popular, but is the cost out of your reach. As more and more people looking to settle down, the demand for housing in Scotland is rising, driving up prices. However, some areas are still within the reach of first-time buyers.

Of course, one of the main reasons that people are put off buying a house is the price tag. The average cost of a new house in Scotland is between £126,000 – £250,000 – and can spiral to over £1,000,000 in some regions.

This doesn’t include all the extras that you might want, like furniture or decoration (not forgetting the cost of moving and stamp duty).

However, instead of thinking about it all at once and potentially putting yourself under massive pressure to buy a house soon (and therefore risking making a worse financial decision), think about how in the long-term buying a house is actually worth it for your overall financial situation.

Iona Chryston Lomond Alloa Sidlaw Haddington Clyde Haddington 

Some of the new homes available from Allanwater Homes

Will the rise in inflation mean a rise in house prices?

If you’re like me, you’ve just heard that inflation increased to 6.2% in February of 2022 from 5.5% in January. At first, you felt a small sense of relief that this meant your salary rise might be a little bit bigger than you thought – but then you remembered that your salary isn’t really set to rise at all.

For many, the worry of a high-interest rate is enough to put home-buying out of reach, however, if you want to buy a new home, it’s easy to look at the headlines and decide that prices are too high. But, like any expense, you should always base your final decision not purely on what’s happening to inflation.

The housing market is changing all the time, with different areas experiencing different trends at any one time, but there’s nothing to suggest that it’s fundamentally broken, affordability of buying this year is better than it has been in over 13 years.

The government thinks so too as they’re working hard to ensure homeownership remains affordable…and there are plenty of mortgages available for houses that may fit your needs perfectly.

Independent Financial Advice

One of the best ways to ensure you explore all the options available to you when seeking a mortgage is to enlist the help of an independent financial advisor. They can sit with you and discuss all your financial requirements, including your budget and where you stand financially. While a bank might do an excellent job of marketing their products, they will tell you what is in their best interest, not yours. Someone who has no vested interest in any product or provider can help ensure that you explore all the options available to you. 

They can also help advise you on what’s best for you and your family, taking into consideration all your individual needs and circumstances. As well as helping you find the right mortgage, they will take care of everything on your behalf, which can potentially save you hundreds of thousands of pounds and ensure your mortgage is affordable in the long term.

If you do not have a financial advisor or know who to go two, we have access to two independent financial advisers who would be happy to offer you assistance.

In conclusion

At the end of the day, location will always play a big factor when you’re looking to buy property. Although some regions in Scotland do come with lower average house prices, certain areas may not be worth the extra cost if you want to live in a certain area. 

Ultimately, choosing an area that is right for you and your family will boil down to personal preference—and don’t be afraid to consider local regions outside of the city centre or key areas popular with first-time buyers.

Thanks to the incredible work of housebuilders, there are a number of affordable homes in Scotland today. They are providing hopeful buyers with a great opportunity to step onto the property ladder and purchase their own homes.