The typical home is not yet affordable for first-time buyers despite the recent falls in price, property pressure group PricedOut.org.uk has said.
Spokesperson for the organisation Katy John stated that the price to average income ratio is still around five, putting the cost of a home out of a normal buyers’ reach.
This view comes despite the recent finding of the Lombard Street Research/Daily Telegraph housing affordability index that property is not only affordable but more so now than at any time since 1996.
“First-time buyers considering buying now to make sure they bargain for a good price and only borrow what they can afford,” Ms John commented.
Prices in the UK fell by 10.7 per cent in the year to June, according to data from the Department of Communities and Local Government.
However, these showed an increase of 2.6 per cent in the second quarter of 2009, following a 3.8 per cent drop in the opening three months of the year