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Last Updated: Friday, 31 March 2006, 23:36 GMT 00:36 UK
Bills 'deter first-time buyers'
Estate agents
About 400 prospective buyers were questioned for the survey
Council tax increases and record energy price rises have been putting off first-time house buyers, it is claimed.

A survey of 400 newcomers to the housing market in Scotland found many based their decisions on council tax charges and how properties were heated.

According to the Clydesdale Bank, one in three first-time buyers would ignore properties which lacked double glazing and cavity wall insulation.

A quarter of decisions were influenced by council tax charges, the bank found.

Researchers also discovered that 16% of buyers would also only opt for a house heated by electricity as they believed gas was much more expensive.

Energy efficient

Steve Reid, manager of Clydesdale's retail banking, said: "The problem is that, unlike a deposit or stamp duty, which are one-off payments, energy costs are ongoing.

"It could be even more for homes which aren't energy efficient."

The report was published the day after Scottish and Southern Energy announced that fuel bills were going up by 16.5%.

SSE management blamed the increase on higher wholesale energy costs and said that the firm had delayed the rise as long as possible.

However, Adam Scorer, director of campaigns at watchdog Energywatch, said: "Consumers must be truly sick and tired of hearing about energy price rises.

"This latest price hike will only further blight the families already struggling to pay exorbitant fuel bills."

There have been similar large increases brought in by several major utility firms this year.


SEE ALSO:
Chancellor warned of 'fuel poor'
21 Mar 06 |  Scotland
Scottish Gas prices rise by 22%
17 Feb 06 |  Scotland
Scottish Power ups energy prices
09 Feb 06 |  Business


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