Publication - Research and analysis

The Evaluation of Low Cost Initiative for First Time Buyers (LIFT)

Published: 21 Jan 2011
Part of:
Research
ISBN:
9780755999316

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.

137 page PDF

826.0 kB

137 page PDF

826.0 kB

Contents
The Evaluation of Low Cost Initiative for First Time Buyers (LIFT)
APPENDIX 4 - ABILITY TO PURCHASE ON OPEN MARKET

137 page PDF

826.0 kB

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.