First-time buyers 'could afford to live in 40% of Britain'

04-Jan-2010

A first-time buyer earning an average wage can now afford to purchase a home in almost 40 per cent of UK local authorities, according to research by Halifax.

In 2007 only six per cent of areas were affordable and in 2008 this figure rose to 24 per cent - but over the last 12 months it has increased to 39 per cent.

Signs that a restriction on lending has ended have triggered the recent upsurge in first-time buyers and improved affordability, the bank noted.

The number of home loans rose in December by 33 per cent from April's low of 1,209 to 1,610.

Martin Ellis, housing economist at Halifax, said: "Housing affordability for potential first-time buyers has improved substantially over the past two years due to the combination of lower house prices and reduced mortgage rates."

Ben Wilkie, editor of What Mortgage magazine, recently stated that taking out a mortgage now for a first property is a good idea because of the "amazingly low" base rate.

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