There has been little cheer for homebuyers recently.
There was no good news in the Budget, mortgage interest rates have been rising and the Chancellor was criticised for not extending the stamp duty holiday on homes less than £125,000 beyond March 24.
Previously the Clydesdale announced an increase in its standard variable mortgage rate, and rates on new fixed rate loans have also been increasing.
So far no details have emerged of the Scottish Government's MI New Home scheme which is expected to provide 95% mortgages for up to 6000 first-time buyers and others aspiring to purchase a new build home.
The only property-related change in the Budget was the increase in stamp duty on homes selling for £2 million or more to 7%. But only 14 properties in Scotland were sold above the £2m mark last year.
By contrast an extra 23% of first-time buyers in Scotland have been exempt from paying stamp duty as a result of the Government raising the starting threshold from £125,000 to £250,000 over the past two years, according to the Bank of Scotland.
The temporary increase in the threshold has meant that nearly all first-time buyers in Scotland (99%) over the period have not had to pay stamp duty. Nitesh Patel, Bank of Scotland housing economist, said: "Returning the threshold to £125,000 will have a significant impact on many Scottish first-time buyers."
However, Rhonda Chambers, mortgage specialist at Edinburgh solicitors and estate agents Leslie Deans, is not sure the stamp duty holiday made a big difference. She pointed out: "We started a campaign in January to alert prospective buyers to the fact that it was coming to an end this month. We expected to be inundated with enquiries. But it didn't happen. Getting mortgage funding is still a much more fundamental problem for first-time buyers unless they can get help from their parents with a 10% or 15% deposit."
Scots told a Building Societies Association survey the biggest barriers to buying a home were raising a deposit and access to a large enough mortgage.
One of the criticisms of the Budget is that the Chancellor could have done more to help those saving for a deposit by increasing the cash Isa limit.
Nationwide chief executive Graham Beale said: "One of the biggest hurdles for people to own their own home is raising the deposit. Savers can pay as much as 40% tax on the interest they receive on their money. The chance to save more in a tax-free account would mean they could really boost the amount they have saved."
Nevertheless, despite the difficulties of first-time buyers, activity has picked up in the housing market since the beginning of the year. Mark Horden of GSPC (Glasgow Solicitors Property Centre) said: "Property sales are up 25% compared to the same period last year. It appears to be mainly due to a marked change of attitude among buyers who have been more decisive and willing to go ahead with purchases."
Mr Horden said that despite the increase in sales the number of instructions from sellers has not been rising in tandem so the stock of properties to buy is shrinking.
One reason for the lack of properties on the market is that many of the people who bought around five years ago and who would now be moving up the housing ladder are stuck in their current homes because of falling house prices.
The average property price in the West of Scotland is currently £133,000 compared to £149,000 at the peak of the market in the third quarter of 2007 – the highest since the second quarter of 2006.
A key problem for those who bought when prices were at their height is that many took a 95% or 100% mortgage so they now have little or no equity in their home.
Meanwhile, the cost of new mortgages is on "a strong upward trend" said Ray Boulger, senior technical manager at mortgage brokers John Charcol, mainly due to a shortage of funds in the market. Nervousness about future interest rate increases has boosted the popularity of fixed rate mortgages, particularly two-year deals. Mr Boulger said: "If you really want interest rate protection I think five year fixes are a better idea."
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