Latest research suggests that it is now more affordable to get onto the housing ladder than at any time since December 2007.
FindaProperty.com’s latest House Price and Affordability Index suggests that an improvement in the average income multiple offered by mortgage lenders, coupled with a slight drop in asking prices, has improved home affordability, compared to average incomes, with the average first-time buyer now needing to find £2,371 less for their deposit in October than they needed in September.
However, those looking to take their first step onto the property ladder still have to find an average £48,782 deposit. This is only the third time in almost four years that the required deposit has dipped below £50,000.
Average asking prices for first-time buyer properties (one and two bedroom flats and houses) are now £153,537, down 0.3% or £430 since September. Prices in this segment of the market have fallen consecutively for the past five months and are now at their lowest point in 2011. Prices are also 0.4% or £659 lower than they were a year ago when the average asking price was £154,232.
Across the UK, home asking prices fell 0.1% (£317) between September and October taking the average home asking price to £219,535. However, prices are still 0.7% (£1,473) higher than a year ago, highlighting that property remains resilient despite the downturn.
Samantha Baden, property analyst at FindaProperty.com, said: “First-time buyers will be encouraged to see that mortgage lenders are willing to offer larger loans and the gap between average earnings and the cost of a first-time buyer property has narrowed.