Average house price rise means buying is still out of reach for many

11 2008
Although house prices are falling, the struggles of first-time buyers do not seem to be easing, new figures suggest.

The FT House Price Index indicates that annual house price growth decreased to 6.1 per cent last month from 6.8 per cent in January.

However, the average price of a UK home was revealed to be £231,530, which could still place it out of reach of the average first-time buyer.

Those who cannot afford to get on the housing ladder may want to consider renting, particularly as many mortgage products are disappearing from the market as a result of the credit crunch.

According to Dr Peter Williams, chairman of Acadametrics, which compiled the index, the "downward trend" in growth is likely to continue.

"Without doubt, 2008 will be a challenging year for all those involved with the housing market and not least for buyers and sellers," Dr Williams concluded.

Separate data from Halifax recently stated that house prices fell by 0.3 per cent in February.
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