UK property market is becoming more affordable for first-time buyers
First-time buyers are finding it easier to take their first step onto the property ladder in over one-third of local authorities, according to Halifax.
A new survey by the UK bank found that the average house price in four out of ten areas of the country was affordable for those on an average level of income. This is up from just 6% in 2007.
The new figures reveal that almost a quarter of local authority areas have become affordable between 2007 and 2008.
Recent statistics released from the British Bankers' Association revealed that house purchase loans were at a two year high in November 2009. In total 44,713 were approve, an increase of 152% on the same month in 2008.
Martin Ellis, housing economist at Halifax, said: "Housing affordability for potential first-time buyers has improved substantially over the past two years due to the combination of lower house prices and reduced mortgage rates. Mortgage payments in relation to earnings are currently significantly below the average during the past 25 years."
Falling house prices and a decrease in interest rates have been named as two of the catalysts behind this change. The current Bank of England interest rate stands at 0.5%, the lowest level ever recorded.
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