Housing 'more affordable' for first-time buyers

Posted: 04 Jan 2010 11:56:16 GMT

Homes have become more affordable for first-time buyers, one expert has stated.

Martin Ellis, housing economist at Halifax, said that reduced mortgage rates and lower house prices have contributed to increased affordability in the first-time buyer sector in the last two years.

"Mortgage payments in relation to earnings are currently significantly below the average during the past 25 years," he added.

Mr Ellis's comments came in response to recent figures from the 2009 Halifax First-Time Buyer Annual review, which revealed that a person on average earnings could now afford to buy a property in 39 per cent of local authority districts in the UK.

In comparison, just six per cent of areas were affordable for first-time buyers during the peak of the housing market in 2006.

According to figures from the Land Registry, the average UK house price increased by 0.9 per cent in November to a value of £161,554.

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