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Majority upbeat on buying new home

Most Scots believe now is a good time to buy a home and they believe property prices are likely to rise in the next year.

Among those surveyed, 69% believed it was a good time to buy a property in Scotland compared to just 11% who did not think this was the case.

The Solicitors Property Centre (SPC), which ­questioned 400 people, also found more than 68% of people said prices would rise over the next year. Only 4% thought prices would fall.

Sentiment among active house-hunters and sellers was almost identical to those who were staying put.

Slightly more than 38% of first-time buyers saw raising the necessary deposit as the biggest barrier to owning a home. A lack of suitable homes is the biggest issue for current home owners looking to move.

Mark Hordern, vice ­chairman of SPC Scotland, said: "Widespread confidence that now is a good time to buy in Scotland suggests that demand for property will continue to grow in the coming months."

Meanwhile, former deputy prime minister Lord Heseltine said mortgages of up to 5.5 times salary could create a "dangerous situation" due to house price bubble when interest rates rise.

He said the Bank would have to make sure that any action it took did not "choke off" energy and enthusiasm in the market.

He said in a radio ­interview: "If you take into account the inevitable increase in interest rates that is going to come some time in the medium if not early future then that is a dangerous situation."

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