UK housing market sees cheaper entry properties

photo credit: tanitta
The UK housing market could pick up in 2009 after a survey revealed property affordability for first-time buyers has improved dramatically.

Halifax has released a first-time buyer affordability review, tracking prices in 406 local authorities across the UK.

It classes homes in each area as affordable if the average price for a new buyer is lower than the amount an average earner in the area can pay.

Halifax said the new survey would be released at least every quarter and was based on an historical average house price to earnings ratio of 4.0.

Halifax chief economist Martin Ellis said:

“There has been a marked improvement in housing affordability in many parts of the UK.

First-time buyers, in particular, are benefiting, especially outside the south of England and the Midlands. We expect this trend to continue in 2009.”

Statistics from the survey show in 2008, the average price paid by a first-time buyer was affordable for someone on average earnings in 14 per cent of local authority areas, compared to just four per cent in 2007.

Housing is currently most affordable for first-timers in Scotland, Yorkshire and the Humber, the company added.

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