Property in nearly 40 per cent British areas has become affordable for first-time buyers, a fresh study revealed.
Figures compiled by the Halifax bank showed that average earnings could now afford property in around four out of ten local authority districts.
Earlier in 2007, when property prices were at their peak, average earnings could afford homes in only 6 per cent local authority districts of the country.
Fall in property prices in wake of recession plus lower interest rates improved first-time buyers’ affordability.
Commenting on the issue, Martin Ellis from Halifax said, “Mortgage payments in relation to earnings are currently significantly below the average during the past 25 years.”
The average property price purchased by a first-time buyer during 2009 was 133,794 pounds, down 10 per cent from 2008.
However, a number of first-time buyers could not take advantage of the situation due to tighter lending norms.