According to a recent report* someone on ‘average earnings’ can now afford the average first time buyer (FTB) property in almost four out of 10 areas in the UK.
The improvement in affordable properties is a consequence of lower interest rates and decreased house values.
The statistics show that in 39% of local authority districts property is now affordable for FTBs, compared with 2007 when just 6% districts has property available for the average earner.
Despite this positivity FTBs are facing a challenge when securing a mortgage, as they require a large deposit of around 25% when purchasing their property.
“Mortgage payments in relation to earnings are currently significantly below the average during the past 25 years,” said Martin Ellis, housing economist at Halifax.
“The tightening in lending criteria over the past two years is, however, making it very difficult for some to take advantage of lower property prices and mortgage rates,” adds Ellis.
* Figures from the Halifax
Source: www.homemove.co.uk
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