News
Affordability at highest since 2003
Property website Zoopla has revealed that housing affordability is now at its highest level since 2003, with the average UK income earner able to afford to buy 58% of all homes.
The current levels were last seen in 2003 when the affordability rate was 56%. Levels have risen significantly from the property market peak in 2007, when just 34% of homes were affordable.
Zoopla calculated the affordability rate using median incomes and average house prices in each geographic area along with mortgage rates. It judged a home to be affordable if one third of the median income was sufficient to cover mortgage repayments.
Nicholas Leeming, commercial director of Zoopla, commented: “We are at levels not seen in the UK housing market for almost seven years, which makes it a great time to buy, especially if current low interest rates can be locked in by the borrower.”
Katie Tucker, chief operating officer at Private Finance, said: “Over the last three months, supply has risen rapidly as many cheap flats and apartments have been put back on the market.”
Michael Brill, director at Baronworth, added that despite the rise in affordability, people without access to large deposits will still struggle to access the market.
Shaping the mortgage market around today’s first-time buyer
Sponsored by Newcastle for Intermediaries
He added: “Until more 90% deals are offered, people will not be able to get onto the ladder.”