2 Apr

Affordability for housing at nine-year high

Affordability for housing at nine-year high

The average house in the UK is now far more affordable than it has been at any time in nearly a decade, a new study has found.

The latest data released by Lloyds TSB has shown that the mean cost of buying a home in the UK is now 5.5 times the average gross income, meaning that more people can turn to estate agents to buy.

It is also good news for first-time buyers, who may feel slightly more confident in buying, after the end of the stamp duty holiday last week made purchasing a house more expensive.

The average ratio of house price to income is now lower than it was last year (5.7) and much better than at the home value peak in 2008 (7.9). It is the best figure seen in the UK since 2003, when the level sat at 5.3.

Suren Thiru, housing economist at Lloyds TSB, said: "Looking forward, the marked improvement in city affordability is likely to help support demand for those able to enter the housing market."ADNFCR-1222-ID-801332079-ADNFCR

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