The Evaluation of Low Cost Initiative for First Time Buyers (LIFT)
This is the final report of an Evaluation of the Low Cost Initiative for First Time Buyers. It evaluates four schemes: Open Market Shared Equity; New Supply Shared Equity; Shared Ownership; and GRO Grants.
APPENDIX 4 - ABILITY TO PURCHASE ON OPEN MARKET
The table below shows whether NSSE and OMSEP purchasers could have purchased on the open market. This is based on calculating the average house prices for the lowest 25 per cent prices in each local authority area. We have then calculated the lowest income required to obtain a mortgage for this full amount, based on a maximum lending multiple of 3.21. This was the average lending multiple for first time buyers in 2008/09 and 2009/10.
This is a relatively crude calculation of affordability, and should be interpreted bearing in mind the caveats highlighted in Chapter Four. It was not possible to undertake this analysis for shared ownership and GRO purchasers.
Table A4.1: Ability of NSSE and OMSEP purchasers to buy on open market
Local Authority Area |
Average House Prices in Bottom Quartile |
Income Required to Purchase * |
% NSSE Could Have Purchased on Open Market |
% OMSEP Could Have Purchased on Open Market |
|---|---|---|---|---|
Aberdeen City |
105,000 |
32,710 |
37 |
21 |
Aberdeenshire |
115,000 |
35,826 |
25 |
6 |
Angus |
80,000 |
24,922 |
Not available |
77 |
Argyll and Bute |
80,000 |
24,922 |
54 |
34 |
Clackmannanshire |
75,000 |
23,364 |
69 |
60 |
Dumfries and Galloway |
82,000 |
25,545 |
28 |
35 |
Dundee City |
73,548 |
22,912 |
Not available |
37 |
East Ayrshire |
65,000 |
20,249 |
63 |
0 |
East Dunbartonshire |
110,293 |
34,359 |
Not available |
15 |
East Lothian |
120,000 |
37,383 |
11 |
3 |
East Renfrewshire |
115,000 |
35,826 |
12 |
10 |
Edinburgh City |
125,000 |
38,941 |
2 |
2 |
Eilean Siar |
60,625 |
18,886 |
Not available |
Not available |
Falkirk |
74,000 |
23,053 |
4 |
48 |
Fife |
76,000 |
23,676 |
55 |
56 |
Glasgow City |
80,000 |
24,922 |
73 |
50 |
Highland |
93,000 |
28,972 |
40 |
32 |
Inverclyde |
67,875 |
21,145 |
65 |
36 |
Midlothian |
110,825 |
34,525 |
Not available |
12 |
Moray |
91,000 |
28,349 |
Not available |
Not available |
North Ayrshire |
67,500 |
21,028 |
88 |
22 |
North Lanarkshire |
69,000 |
21,495 |
79 |
55 |
Orkney Islands |
69,000 |
21,495 |
Not available |
Not available |
Perth and Kinross |
94,000 |
29,283 |
36 |
37 |
Renfrewshire |
71,000 |
22,118 |
Not available |
36 |
Scottish Borders |
87,500 |
27,259 |
Not available |
40 |
Shetland Islands |
63,000 |
19,626 |
Not available |
Not available |
South Ayrshire |
83,000 |
25,857 |
Not available |
0 |
South Lanarkshire |
75,000 |
23,364 |
67 |
28 |
Stirling |
96,900 |
30,187 |
Not available |
19 |
West Dunbartonshire |
68,000 |
21,184 |
88 |
29 |
West Lothian |
93,000 |
28,972 |
32 |
31 |
Scotland |
85,000 |
26,480 |
48 |
23 |
*Income required calculated using the average lending multiple for first time buyers in Scotland for 2008/09 and 2009/10, using CML figures. The average was calculated at 3.21. Ability to purchase on the open market has been calculated using income information contained in the Scottish Government shared equity database.
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