Houses 'affordable' for first-time buyers

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Houses 'affordable' for first-time buyers

Mon 4th Jan 2010

First-time buyers can now afford to purchase properties in four in ten local district authorities, according to Halifax.

A buyer with average earnings could afford to buy a property last year in 39 per cent of areas, compared to just six per cent of areas in 2007.

However, the reluctance of many lenders to give mortgages means that many people are missing the chance to take advantage of the affordable prices. However, they are signs that institutions are beginning to lend to more would-be buyers.

Martin Ellis, housing economist at Halifax, commented: "Housing affordability for potential first-time buyers has improved substantially over the past two years due to the combination of lower house prices and reduced mortgage rates."

It was recently reported by Halifax in its House Price Index that house prices had increased for their fourth consecutive month in October, with an increase of 1.2 per cent on the previous month.

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