20 Oct

Affordability showing improvement, new survey indicates

Affordability showing improvement, new survey indicates

Housing affordability in Britain is getting better, a new survey has indicated.

The latest Daily Telegraph and Lombard Street Research housing affordability index has revealed a ten per cent improvement since it reached its floor last year.

Based on the average affordability since the 1960s (100 points), the index hit a 16-year low at just 83 points last year, whereas now it is up to 93 points.

This trend will not change in the near future, Lombard Street director Diana Choyleva said, although she suggested the chances of buyers having a lot of forced sale bargains available are slim because unemployment will not rise as much as it did in the 1990s recession.

Such a situation could lead to a major improvement in the UK mortgage market.

Fresh figures from the Council of Mortgage Lenders show that lending dropped again in September, but this trend may be about to change due to the stipulation the government issued to the banks it has recently taken stakes in that they should increase mortgage lending.

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