Scotland faces twin challenges of boosting housing supply and supporting aspiring buyers
Scotland’s housing market continues to face pressures on both the supply and demand sides, with evidence pointing to a long-term shortage of homes alongside affordability challenges that are affecting prospective buyers.
The Confederation of British Industry (CBI) has called for housing to be treated as economic infrastructure, arguing that Scotland should aim to deliver at least 25,000 homes per year and set clear public delivery milestones.
The organisation pointed out a shortfall of more than 110,000 homes in Scotland since 2008 and urged policymakers to reduce planning uncertainty and delays that can affect development viability and investment.
The CBI said greater certainty could help attract private investment into both affordable and market housing, supporting efforts to increase housing supply.
Pessimism among prospective homeowners
At the same time, research from Pepper Money suggests affordability concerns remain a significant barrier for many potential buyers in Scotland.
Giving brokers the winning edge
Sponsored by Rely
Its survey found that 47% of Scottish adults who do not currently own a home believe they will never be able to do so.
More than one in 10 said they would like to buy a property but do not believe it is achievable, rising to 15% among those with adverse credit.
Cost-of-living pressures continue to influence buyer sentiment. Around 39% of Scottish adults said the cost of living has affected their ability or motivation to purchase a home, while 30% pointed to rising household bills as a factor affecting their ability to enter the market.
Among non-homeowners, a quarter said they do not yet feel financially ready to buy, and 19% believe it will be more than five years before they are in a position to do so.
The research also found that house price growth remains a concern for many consumers, with 57% of Scottish adults saying house prices are increasing too quickly.
For those with adverse credit histories, some challenges appear more pronounced. More than half – 55% – of adverse-credit non-homeowners said the cost of living has affected their ability or motivation to buy a home.
Meanwhile, 42% said they were concerned about securing a mortgage, and the same proportion expressed concerns about the mortgage application process.
The findings suggested mortgage brokers could play a role in supporting some prospective buyers.
Almost a third of Scottish adults said they would use a mortgage broker when purchasing their next home, rising to 41% among those with adverse credit. Among adverse-credit consumers hoping to buy within the next 18 months, this increased to 61%.
Paul Adams, director of sales at Pepper Money, said: “These findings show a clear gap between the aspiration to own a home and what many people in Scotland feel is achievable. Those who are self-employed, have variable income or have experienced credit difficulties can feel particularly locked out of the mortgage market, but this shouldn’t be the case.
“As we launch our first charge mortgage proposition in Scotland, Pepper Money will work closely with brokers to help more customers understand what may be possible through specialist lending and what they need to do to take their next step towards homeownership.”
