Campaigners demanded urgent action yesterday after it emerged the number of first-time property buyers in Scotland has dropped to its lowest level in almost 20 years.
An estimated 30,000 people took their first step on to the property ladder in 2007, 5% less than in 2006 and the lowest number since records began in 1988.
The research, by the Bank of Scotland, found that young people faced a financial struggle to own property, with the average price paid by first-time buyers soaring 113% from £57,929 in 2002 to £123,213 this year.
The average property is now out of reach of first-time buyers in 95% of places, according to the fifth annual First Time Buyer Review. Only Lerwick, Cumnock and Lochgelly are still affordable.
Peter Kelly, director of the Poverty Alliance, said: "It is clear that if buying property is going to be the main way of getting a house there needs to be something done to address the problems for people on low incomes.
"But if we are serious about tackling housing problems we have to make sure we are not just focused on private housing. We would welcome a strong commitment from the government to social housing."
Edinburgh and Helensburgh are the least affordable places for first-time buyers and properties there are 8.2 and 7.5 times the average income of a first-time buyer household.
Lerwick is the most affordable town for first-time buyers, with an average property price 3.5 times higher than income.
The average first-time buyer in Scotland did not pay stamp duty, but with the threshold set at £125,000, many first-time buyers paying more than the average price of £123,213 will have to find an extra 1% of their property price.
The deposit required by first-time buyers has soared 238% since 2002 and the average amount put down for a first property in Scotland is £25,951 - 95% of an average full-time worker's salary. Five years ago it was only 35% of an average worker's full-time earnings.
Mr Kelly said: "It is beyond the reach of people who are earning between £12,000 and £16,000 a year to save up for that kind of deposit.
"More risky forms of mortgage become more attractive when housing prices go up and people are getting up to five times their salary, when in the past it was three times.
"People are putting themselves in more risky positions and it will be people who are on the low end of the income scale who will pay the price for that."
However, industry experts said that conditions for first-time buyers may improve in 2008 with a slowdown in the housing market.
Martin Ellis, chief economist at the Bank of Scotland, said: "A more subdued housing market over the next few years is a positive step for potential new entrants."
The Scottish Government's document, Firm Foundations - The Future of Housing Scotland, acknowledged the housing shortage and pledged to increase the number of houses being built from 25,000 a year to 35,000 by 2015.
A Communities Scotland spokesman said the document considered both social and private housing and councils, social landlords, developers, tenants, lenders and communities were being invited to comment.
He said: "The Scottish Government is determined to help people realise the ambition of home ownership. To do so a Low-cost Initiative for First-Time Buyers - Lift for short - is being established.
"Through Lift we will expand the assistance for first-time buyers through a mix of government grants, shared equity schemes and mortgage related products and services.
"Next month ministers are planning to launch the first Lift-related initiative to boost shared equity home ownership to benefit many first-time buyers."
However, housing charity Shelter Scotland said that an additional 30,000 affordable rented homes, not including general housebuilding, were needed by 2011.
It said that more than 200,000 people were on waiting lists and 9000 households were in temporary accommodation in March this year.
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