House prices 'over five times higher than incomes'

Posted: 19 Aug 2009 11:56:36 GMT

Property prices in the UK are still more than five times higher than consumers' average incomes, it has been suggested.

According to Katy John, who works for the campaign group for cheaper house prices PricedOut.org.uk, the value of housing is not yet at reasonable levels for people to buy property for the first time.

Indeed, advising first-time buyers on how to act, she said that they should bargain for a good price whenever possible and "only borrow what they can afford".

"PricedOut.org.uk anticipates that we will see further falls in house prices," the expert explained.

Her comments came after the Communities and Local Government department's latest house price index, which was published last week, found that UK house prices were 10.7 per cent lower than in June 2008.

The figures indicated that the mix-adjusted average property price in the country stood at £191,423 in June 2009.



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