Houses 'need to become more affordable'

Thursday, 11, Mar 2010 11:45

First-time buyers are still struggling to get on the property ladder as house prices remain unaffordable, it has been claimed.

The government should be doing more to increase affordability, especially in areas where first-time buyers are priced out of the market, said Katy John, spokesperson for campaign site PricedOut.org.uk.

"We need clear measures in place to create a more sustainable, affordable housing market and prevent another property boom like the one we have seen over the last ten years, which saw affordability levels reach an all time low in 2007," Ms John commented.

She called for more sensible lending policies, an increase in new-builds and higher taxes on the buy-to-let sector.

According to the latest Halifax House Price Index, prices fell by 1.5 per cent in February, the first decline since June 2009.

The average house price is now £166,857, up £12,367 since the low seen in April 2009.