Buying a house becoming affordable
Posted on May 06th 2009
The average price of a house has dropped significantly in the past 18 months with the affordability for first time buyers trebling. This now means that someone on average earnings could now afford to buy their first home in 21 of local authority areas, up from just 6 in the third quarter of 2007, according to Halifax.
Martin Ellis the housing economist at Halifax said: '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. Prospective first-time buyers should factor the likelihood of further house price falls into their calculations when deciding whether or not to buy.'
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