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Gap between house prices and earnings narrows – but higher borrowing costs limit affordability gains
Published on: 05 October 2026 | 20 min read
The typical Scottish home now costs around 5.3 times average earnings, down from 5.4 a year ago, according to new research from Bank of Scotland.
Nationally, the average property price increased by 3.9% over the last year to £223,277, while average earnings rose by 5%, narrowing the gap between average property prices and incomes.
For comparison, at a UK level, property prices rose by +0.5% over the last year, to £299,131, while average earnings rose by +4.5% to £40,790.
However, while house prices have become more affordable compared to earnings, higher interest rates mean average monthly mortgage repayments in Scotland have increased over the last year, rising from £793 to £863, an increase of 9%.
At a UK level, average mortgage costs have risen from £1,100 to £1,157, an increase of 5%.
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