Lowest house prices still unaffordable for many, expert states

04 2008
While potential first-time buyers are resigning themselves to lowering their expectations, thousands are still being priced out of the property market, an expert has claimed.

In comparison to the average UK house price of £190,000, first-time buyers are spending an average of £160,000 in getting a foot on to the property ladder, though this still represents an unrealistic sum for many, particularly as new figures from the Halifax show that average deposits are now in excess of £34,000.

"We're way past beginning to debate affordability – it's bizarre," said Paul Holmes, chief executive of property financing specialists Firstrung.

"In my experience the priced-out first-time buyer is genuinely starting, even as a starting point, to look at [paying] five to six times [their] salary, which nine times out of ten is the point at which a first-time buyer should simply say no, because the weight of debt is absurd," he added.

In comparison, last month, the Royal Institute of Chartered Surveyors reported that its members have seen a sharp increase in tenant demand over recent months, with demand strongest in the south-east and east of the country.ADNFCR-1219-ID-18413761-ADNFCR

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