Twitter Facebook RSS FEEDS

Affordability for first-time buyers improving

Saturday, 2 May 2009 9:02 AM

Home affordability for first-time buyers (FTB's) has improved "substantially" since 2007, according to the Halifax FTB affordability review out today.

Local authorities where the average price paid by an FTB was affordable, based on average earnings, increased by 21 per cent, compared with just 6 per cent in quarter three of 2007.

Therefore the number of local authorities in the UK where housing was affordable to FTB's more than trebled in the last 18 months, with the house price to earnings ratio now lower than it has been for six years, down 26 per cent since the summer of 2007.

The proportion of disposable income used to pay for a mortgage also decreased, which the Halifax attributed to falling house prices teamed with low interest rates.

Martin Ellis, housing economist at Halifax, said: "There has been a marked improvement in housing affordability for potential first-time buyers in many parts of the UK over the past 18 months.

"This trend continued in the first three months of 2009. The significant reductions in house prices, relative to average earnings, has resulted largely from the decline in house prices since the autumn of 2007. As a result, housing is at its most affordable, on this key measure, for more than six years."

Despite the improvement in affordability, the number of FTBs is still at a very low level.

Mr Ellis added: "Conditions in the housing market are likely to be tough during the remainder of 2009 despite the improvements in affordability.

"Increasing unemployment, low consumer confidence and the constraining effects of the continuing dislocation of the financial markets on the availability of mortgage finance are all likely to exert downward pressure on the market over the coming months. House prices are expected to decline again in 2009. Prospective first-time buyers should factor the likelihood of further house price falls into their calculations when deciding whether or not to buy."

Related stories

Young couple looking in estate agent's window

More towns affordable for first-time buyers

But the North-South divide is as evident as ever, with just eight per cent of southern areas being affordable for first-time buyers.

 Lending to first-time buyers may have increased, but so have their mortgage costs. Image:Thinkstock

Boost for first-time buyers and NewBuy

More loans available for first step on the property ladder as Halifax reveals details of mortgages for new-build homes.

Mortgage loan agreement contract with house keys

Number of first-time buyers increases

Over 18,000 first-time buyers secured mortgages in June – nearly a third more than in May.

 The top place for first-time buyers is Milton Keynes. Image:Wiki

Top property hotspots named for first-time buyers

Milton Keynes leads the way on to the property ladder, according to research by Experian.

First-time buyers receive the keys to their property

New 95% mortgage launched for first-time buyers

Principality’s Assisted First-Time Buyer deal allows families to use their savings to secure mortgages for relatives.

 Home loans fall to lowest level for 15 months, says e.surv.

First-time buyers hardest hit by fall in lending

Home loans fall to lowest level for 15 months with biggest impact on borrowers with small deposits, says e.surv.
A place on the property ladder is getting even more distant for today's young people. Image:Thinkstock

Survey reveals average age of first-time buyers

Would-be owners have to wait up to eight years longer depending on where they live, say Clydesdale and Yorkshire Banks.

 Six per cent say they are relying on winning the lottery to get on the housing ladder. Image:Thinkstock

First-time buyers expecting to wait until they are 37

Home hunters expect a long wait to buy their first home and four out of ten have given up on owning, says MoneySupermarket.com.
Average mortgage payments for a first-time buyer household fell by £20 a month over the year.

Slight boost in prospects for first-time buyers

Falling house prices lead to slight improvement in ability to buy, says RBS.

Houses in Edinburgh

Scottish Government to help first-time buyers

The Scottish Government has agreed to support a scheme to help first-time buyers purchase a new home.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

FAQs about commercial stamp duty

If you want to relocate to larger premises, you need to know about commercial stamp duty. Different rates apply than with residential property, however, like residential buyers, you could potentially benefit from stamp duty mitigation.

Save space with a small bathroom suite

Most people dream of having spacious bathrooms with a freestanding tub and a separate shower cubicle where you can relax in pure luxury. However, the reality is that bathrooms are rarely as big as we'd like them to be. Here are some tips on how to make the most of a small bathroom.

The benefits of choosing painted kitchens for your home

If you want to give your home a makeover, consider painted kitchens. While these look great in traditional properties, such as cottages and farmhouses, they also work well with contemporary spaces due to the large selection of styles and colours.