Halifax reports house affordability for first-time buyers
A new report from Halifax has suggested that first-time buyer’s affordability has trebled over the last 18 months.
Halifax announced that people on regular earnings can afford to buy their first house within 21% of local authority areas, which was an increase of 6% from 2007.
The measure of house affordability is usually house price to earnings ratio and at the moment it is at the lowest point for over 6 years which is 4.34 and figure has decreased from 5.84 in 2007.
Martin Ellis, housing economist at Halifax commented: "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.
He went on to say: "This trend continued in the first three months of 2009. The significant reductions in house prices, relative to average earnings, have 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."
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