Rising House Prices in Mid Dunbartonshire

Rising house prices affect people in different ways. For owners, prices going up represents return on their investment and a more secure future. However, for those who are looking to buy, especially those planning to buy for the first time, news of rising property prices can be daunting.

It was reported in The Herald last week that house prices in East Dunbartonshire have risen by 0.2 percent, with the average property now costing £258,625. This contrasts with the picture across Scotland, where the average price fell by 2.8 percent over the same period.

In terms of being able to afford a home, East Dunbartonshire is the fourth most expensive in Scotland when it comes to annual salary. To buy a property here, on average, prospective buyers need to be earning over £40,000 – nearly £8,000 more than the national average wage.

One of the issues at the heart of house buying is the affordability of mortgages and how they relate to salaries.

There are people in Mid Dunbartonshire, and across Scotland and the UK, who consistently pay their rent and never miss a payment. Many of these individuals have been doing this for years; they are dependable, reliable, and trustworthy. Exactly the kind of people who should have mortgages. 

However, due to sky-high deposits, they are effectively barred from owning homes and find themselves renting despite wanting to move into the privately owned housing sector. This is unfair and stifles individual aspiration and choice.

This lack of choice can also impact personal decisions, like getting married or starting a family, as renters put off these choices while they cut their costs in the name of saving up for a deposit that is far higher than their parents or grandparents would have paid, as a percentage, for their first home.

I believe that evidence of paying rent on a regular basis, from a stable income, should count towards being offered a mortgage in the absence of a large deposit. An individual or family who have shown they are responsible enough to pay rent on a constant basis are self-evidently capable of paying a mortgage. I would encourage any steps in that direction.

House prices also have an impact on other choices people make in life, particularly in terms of education.

This week is Scottish Apprenticeships Week, during which we celebrate the benefits of an apprenticeship education and the contribution those who choose that path in life make to our communities. I am proud to support the week and I’m always glad to hear about apprentices living in Mid Dunbartonshire and their successes.

Our renewable energy and net zero industries offer great opportunities for apprentices keen to learn the highly specialised and valuable skills that will be needed to keep places like Mid Dunbartonshire clean, green, and powered for the future.  For some this leads to buying their first property sooner as they are in settled employment.

However, for those who choose to go on to university, rising house prices make buying their first home elusive while they invest in their future so they can take advantage of the opportunities that their qualifications bring.

People in Mid Dunbartonshire, and across Scotland, deserve to have a range of options available to them.

For some, the flexibility offered by renting suits their stage of life and circumstances.

For others, the ideal situation is being able to buy and get onto the property ladder. For too many that choice is becoming more and more remote. If we work together, across politics, the private sector, finance, and government, we can remove the barriers to entry and make house buying possible for those who see it as a key part of their future.