Money & Stats: Young are Priced Out of Housing Market

Young families and first-time buyers in Glasgow are being priced out of the property market, as a new survey shows that 70 per cent of privately-sold homes are out of reach of people on an average salary. The survey, carried out by Glasgow City Council, revealed the full impact the rise in property development in areas such as the West End, the South Side and Glasgow Harbour has had. A decade ago, just 36 per cent of properties were beyond the reach of those taking home the average wage. The price of a property in the city now averages at more than 124_00_GBP, while the average wage is just over 20_000_GB/year. The 'ripple effect' of property hot spots has meant that prices in once affordable areas like Knightswood and Dennistoun are now beyond many budgets. Glasgow councillorMr.Eamon Fitzgerald, convener of the housing development committee, said:
'Glasgow City Council is very aware that for too long, some Glaswegians have found themselves priced out of the housing market. 'By introducing "The Scottish Executive's" "Homestake scheme" to Glasgow, we hope we can assist people on low incomes who want their own homes but cannot afford to pay the full price. 'We recently bid for and received extra money from "The Scottish Executive" to help buy land in order to build affordable homes in these areas.'
Though piloted in Edinburgh, Glasgow is the first local authority to actually put the full Homestake scheme into practice. In 2005-03, 'The Scottish Executive' unveiled its shared-equity scheme whereby people on low incomes can get assistance from a council-approved local social landlord, like the Glasgow Housing Association, to buy a private property. Buyers can receive up to 50 per cent of the house price. '70 per cent of homes out of reach for average earners', Rhiannon Edward, The Scotsman, 2006-01-21


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