Research marks affordability rise
New research has indicated that the affordability situation is
improving, particularly for first-time buyers.
Figures from Halifax show that the ratio of price to annual income
has fallen from 5.84 in July 2007 to 4.56 in November 2008, the
best figure since July 2003.
Historically, the ratio has been around four.
First-time buyers have seen a notable improvement in their
circumstances, as seven of the 12 UK regions have seen a rise in
the number of local authorities where the average price is
Commenting on the trends, Halifax chief economist Martin Ellis
stated: "There has been a marked improvement in housing
affordability in many parts of the UK. First-time buyers, in
particular, are benefiting, especially outside the south of England
and the Midlands."
Mr Ellis predicted a continuation of the trend in 2009, echoing
views recently expressed by Paul Holmes, the chief executive of
first-time buyer specialists Firstrung.
He stated that those entering the property market will be able to
buy larger homes than would previously have been the case.