15 Feb

Affordability for first-time buyers hits 8-year high

Affordability for first-time buyers hits 8-year high

First-time buyers looking for houses for sale in the UK may find it easier to get onto the property ladder this year.

A forecast from the Centre for Economics and Business Research (CEBR) has revealed that affordability for people buying their first home will reach an eight-year high.

Low mortgage interest rates and weakening house price growth mean first-time buyers are more likely to afford houses for sale in the coming year.

Shehan Mohamed, an economist at the CEBR, said: "Indeed, affordability for first-time buyers will reach an eight-year high this year, with first-time buyers spending an average of 24.2 per cent of their disposable incomes on mortgage payments."

House prices will be 1.7 per cent lower in comparison to 2010, according to the economic consultancy.

Priced Out believes the government needs to build more new houses and tighten up mortgage regulation to stabilise the market.

Matt Griffith, spokesman for the affordable housing campaign, said the UK housing market behaves "not too differently from a rollercoaster".ADNFCR-1222-ID-800406278-ADNFCR

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