FTBs find 'more affordable homes'

04 January 2010

Written by David Whittaker

Buy to let landlords may be affected after it was announced that first-time buyers can expect improved home affordability.

Halifax's First-Time Buyer Annual Review revealed that the average house price for a first-time buyer (FTB) in 2009 was affordable for those on average earnings.

This was the case in 39 per cent of local authority districts - compared with six per cent in 2007.

Housing economist for Halifax Martin Ellis said this was a result of reduced mortgage rates and lower house prices.

"Mortgage payments in relation to earnings are currently significantly below the average during the past 25 years," he added.

However, a "tightening in lending criteria over the past two years" has meant that some cannot take advantage of this, Mr Ellis stated.

Between 2008 and 2009, almost one-quarter of local authority areas became affordable, the review noted.

Increased mortgage availability was reported thanks to a rise in the number of live mortgage products.

The report, published on January 3rd, follows figures from the Land Registry which said that property prices are on the increase.

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