Scottish Property News

House buyers pay for extra room

HOMEOWNERS in Scotland are paying up to £175,000 to give their family an extra bedroom, according to a new study released today. The latest homebuyers report from Clydesdale Bank says that growing families making the move from a two-bedroom terraced house to a three-bedroom semi-detached home face an average price jump of £93,000.

In Aberdeen, researchers found the cost of stepping further up the property ladder could be as much as £175,000 - a rise of 84 per cent over the cost of a two-bedroom house.

Clydesdale said the massive price difference was not deterring people from buying bigger properties to accommodate their expanding families, despite the likelihood of losing a second income and gaining extra costs by choosing to have a child.

The bank suggested the findings reflected shortages of three-bedroomed houses on the market, particularly in the north. However, some Scottish estate agents branded the research misleading, saying it did not compare like with like and pointing out that buyers of larger homes were paying for other extras such as gardens.

The report from Clydesdale stated: "The cost of stepping up from a two-bedroom terraced home to a family-sized three-bedroom semi-detached home in Scotland varies considerably from region to region. The average cost of stepping up across the country is around £93,000 (a 53 per cent increase) but it can be as much as £175,000 (an 84 per cent increase) in Aberdeen, indicating a shortage of three-bedroom properties in the town."

The survey also said that "only one-in-five people are letting current house prices put them off their quest for a dream home and a move up the property ladder to add an extra bedroom to start or grow their family". Clydesdale's head of retail Andy Hobbins said: "Our research shows that people are not being put off by the high price of an extra bedroom."

In Aberdeen, however, David Geddie, a partner with Paull and Williamson estate agents gave a very different explanation of the figures. He said: "The suggestion of such a swing in value between the two (property types) is frankly ridiculous. "There are two-bedroomed terraces fetching around £120,000 or £130,000 and three-bedroomed semis could be £250,000 to £300,000, so that is where they are getting their statistics, but they are skewed." Slater Hogg & Howison estate agents said the report gave a fairly accurate picture of the current market, but suggested an alternative reason for buyers readiness to pay a high price for threebedroomed houses.

James Lang, director, said: "There are more double income buyers who are prepared to pay for these properties so that they can convert the third bedroom into a home office."