Home affordability for potential first-time buyers (FTBs) has improved substantially since mid 2007, according to the latest Halifax FTB Affordability Review.

The proportion of local authorities in the UK where housing is affordable for an FTB has more than trebled since 2007. In the first quarter of 2009, the average price paid by an FTB was affordable for someone on average earnings in 21% of local authorities; compared to just 6% in 2007 Quarter three.

-- Advertisement --

Martin Ellis, Housing Economist at Halifax, commented: "There has been a marked improvement in housing affordability for potential first-time buyers in many parts of the UK over the past 18 months. This trend continued in the first three months of 2009.

"The significant reductions in house prices, relative to average earnings, has resulted largely from the decline in house prices since the autumn of 2007. As a result, housing is at its most affordable, on this key measure, for more than six years."

(CD/JM)