FIRST-TIME buyers are behind a rise in property sales in Scotland, with an increase in the mortgage deals on offer also boosting confidence, according to new figures.
House purchase numbers in August were 17% higher than in 2012, although buyers were paying slightly less, a survey by LSL Property Services/Acadametrics found. It said the average home was sold for £143,278, down 0.3% from a year before.
In separate figures released yesterday, the Office for National Statistics (ONS) reported a marginally steeper price drop of 0.7% over the year, while prices in England rose 4.1% in the same period.
Gordon Fowlis of estate agency Your Move, part of LSL, said: "First-time buyers are making a comeback in Scotland. But it is a much more muted recovery compared to south of the border.
"The sluggish rate of growth, shown by the drop in prices of £303 monthly and £430 compared to a year ago, adds to the many uncertainties facing the Scottish housing market.
"Yet there are several signs that things are changing. The mortgage market is perking up now that the economy is on the mend, with figures showing that sales are up by 10% in January to August this year, compared to 2012. This is due to the bounce-back in first-time buyer numbers which has kickstarted the market."
The market is expected to see the heat of demand from would-be buyers turned up further over the coming months, following the launch of the Help to Buy scheme, which offers state-backed mortgages to people with deposits as low as 5%.
Royal Bank of Scotland (RBS), NatWest, Halifax and Bank of Scotland started offering loans under the initiative last week and have reported strong interest so far, while more lenders including HSBC, Barclays and Santander have confirmed their plans to come on board.
Mr Fowlis said more availability of high loan-to-value mortgages had raised confidence across the board.
He said: "Banks are being proactive in their approach and are happier to lend to borrowers without big deposits. Buyers are open to an improved range of mortgage deals, better pricing and more enhanced product choice due to the rise in competition.
"The Scottish Government has unveiled its own version of the Help to Buy equity loan scheme, and around £220 million has been set aside to help borrowers onto the housing ladder.
"First-time buyers are crucial to the housing market's health, but it is activity from second-time buyers and other movers which will put upward pressure on prices and hence boost the rate of recovery all round."
The ONS figures showed that, UK-wide, first-time buyers are typically paying £185,000 for a property, which is 4.9% more than they would have done a year ago, while home-movers are paying £283,000 on average.
The average price of a property in the UK is now £247,000. House prices in England are now 1.3% higher than their previous 2008 peak, although in Scotland prices are still around 5% below their peaks.
Meanwhile, a study by homeless charity Shelter said that half of people in Scotland want property values to remain at their current levels or to fall, while 64% think house prices in Britain are too high.
Graeme Brown, Director of Shelter Scotland, said: "With an entire generation frozen out of home-ownership and being squeezed by high rents, there are lessons to be learned from the boom era. The majority of people in Scotland agree."
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