Helensburgh Advertiser | News | New buyers squeezed out

Wednesday, 7th January, 2009

Published: Friday, 5th January, 2007 13:52

New buyers squeezed out

FIRST-TIME buyers are being priced out of the Helensburgh housing market.

And if current trends continue buyers could be forking out nearly £400,000 in just five years' time — as the average price of a burgh property has more than doubled in the last five years.

According to Halifax Bank of Scotland Price Index the price of a Helensburgh home has soared by 15 per cent in the past 12 months making the average cost £190,005 — a figure seven and a half times the average income of a first-time buyer.

And Helensburgh Central Councillor John Tacchi slammed those responsible for awarding crippling mortgages.

He said: `I think it is very, very worrying for the future of the town.`

`Banks and mortgage societies are granting mortgages up to six times an individual's salary and I think that is very irresponsible and is encouraging people to get into huge amounts of debt.`

He added: `My house has gone up, five, six, maybe even seven times since I bought it, and that is a lot for first time buyer. A planning application has gone in for the Hermitage Academy site so we are getting the housing stock but not enough at the right price.`

The Price Index lists Helensburgh behind only Edinburgh in terms of being the most expensive place to buy property north of the border.

However, Colin Macmillan, a valuer based in Helensburgh's Slater Hogg and Howison, believes it is important to consider other factors as well as the price of the property.

He said: `We have got to focus on the fact that is it less expensive than in Glasgow and that is bringing professionals to the area. The peninsula is only around 40 miles from Glasgow, it is a great, healthy place to bring up children and more people are realising that.

`If you were to look at the price of a two-bedroomed flat in the west end of Glasgow it would be around £250,000 whereas in Helensburgh a two-bedroomed flat would cost somewhere between £150,000 and £197,000 so I don't know where they [HBoS] get their statistics from.`

The Advertiser reported in August how figures from Halifax Bank of Scotland showed that public sector workers such as ambulance workers, nurses, firefighters, police officers and some teachers, had been priced out of the housing market because of rocketing prices in the burgh.

But Colin Macmillan insists the figures are not as daunting as they sound.

He said: `For first time buyers the prices are not that great but it is great for the area.

`It is important to remember that Helensburgh still has considerably cheaper property than in Glasgow and buyers will get more for their money when they buy in the area.`

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