11 Aug

More affordable than ever for first-time buyers

More affordable than ever for first-time buyers

Estate agents could see an influx of new trade after a study showed that affordability of homes for first-time buyers was at an eight-year high.

A Halifax first-time buyer review has shown that the average house price paid by a first-time buyer in June of this year was affordable for someone on average earnings in 48 per cent of all local authority districts in the UK, compared to 40 per cent in 2010 and six per cent in 2007.

The report also found a north-south divide, with 80 per cent of all local authority districts in the north of the UK being affordable for first-time buyers , that's a staggering ten times the proportion of affordable areas in the south, where the figure stands at just eight per cent. This means that those interested in property for sale in Lewes are likely to be at a disadvantage compared to their compatriots further north.

Suren Thiru, housing economist at Halifax, said: "It’s encouraging that housing affordability for first-time buyers in general has improved significantly over recent years, as a consequence of the marked falls in both house prices and interest rates since 2007."

Halifax estimates there were 86,000 first-time buyers in the first half of this year - down 10% from the same period in 2010.

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