HOUSE prices in Scotland have risen more than twice as fast as earnings over the last five years, a think tank has warned.
The average house price has risen by 14% from £170,000 to £193,000 since 2011, according to an analysis of official figures by the Resolution Foundation.
The average weekly wage in Scotland has risen by just 6% from £462 to £491 in the same period, indicating house price growth has outstripped wage rises by a ratio of 2.2.
The "alarming" rise in house prices has made owning a home impossible for many Scots, forcing them into private lets and subsequently driving up rental prices as well, the foundation said.
Lindsay Judge, a policy analyst at the Resolution Foundation, said: "Runaway house prices have had a clear feed through to living standards in recent years.
"Most obviously, it has priced people out of home ownership, pushing significant numbers into the private rental market.
"Scotland may not have seen the same explosive house price inflation as other parts of the UK but it's alarming that house prices are increasing at double the rate of average weekly earnings, making owning a house impossible for many more Scots.
"But rampant house prices inflation isn't just a problem for wannabe home-owners.
"It has increased the stock of mortgage debt and fuelled demand for renting that is driving up costs there too.
"Ultimately, we all pay for house price inflation by spending a greater share of our incomes on housing."
House prices across the UK have increased 5.1 times faster than earnings.
This decoupling of house price and earnings growth has been even more pronounced in London and the South East, where house prices have increased by 57% and 39% respectively.
While average weekly earnings have increased by 5% across the South East, they have actually fallen very slightly in London, reflecting both reductions in bonuses at the top of the earnings distribution and strong employment growth in lower paying roles, the foundation said.
Post-millennial house price rises have led to "a dramatic shift in housing tenure", it added.
Home-ownership rates have fallen from about 70% to 55% across the UK over the last decade for those on low to middle incomes.
The proportion of people renting privately has doubled over the same period to 27%.
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