House prices "too high for most of us"

Feb 3 2009 by Jeff Holmes, Paisley Daily Express

HOUSE prices are still outwith the reach of most Buddies, according to new figures released yesterday.

Despite falling prices, due to the economic recession, it is still proving difficult for many people to climb aboard the property ladder.

The average house price in Renfrewshire is currently £126,924, £100,000 less than Scotland’s highest, in Edinburgh, and more than £90,000 shy of neighbouring East Renfrewshire.

But while Harry Donaldson, Scottish Secretary of the GMB Union, insists we can get back on an even keel, he reckons it’s still some time off.

He said: “This new analysis shows that house prices have yet to fall towards the affordability range as they have done in other parts of the country.

“For Scotland as a whole, house prices have to adjust downwards by up to 20 per cent, although the figure is higher in some parts of the country.

“This is likely to happen by a combination of a fall in prices and erosion by inflation while wages catch up.”

Mr Donaldson added: “The sooner prices return to their long-term affordability range the better.

“The house price bubble has to unwind and that, together with the decline in the price of oil, the cut in interest rates and a cut in the VAT rate should mean there will be more money in the pockets of workers who are able to stay in their jobs.

“At that point there would be light at the end of the tunnel in this banker’s recession. It is not clear how far away that point is.”