Despite the incoming bad news and the recession still affecting our daily lives, it seems that housing affordability is not just improving but at an alarmingly fast rate. A new report has shown that housing affordability has improved ?significantly? ever since mortgage payments peaked at 48 per cent of disposable income two years ago in the third quarter.
Halifax report that payments on mortgages accounted for 31 per cent of disposable income in the first quarter of 2007, which is below the 25-year average of 37 per cent.
All 12 UK regions have had their affordability situation improved ever since the third quarter in 2007. Northern Ireland and London have benefitted the most; Northern Ireland?s mortgage payments as a percentage of disposable income fell from 63 per cent to 37 per cent, while London?s fell from 56 per cent to 34 per cent.
Halifax housing economist Martin Ellis said UK property prices and interest rates have played a key part in all this: ?The significant reduction in mortgage payments paid by a typical homebuyer has resulted largely from the combination of the decline in house prices and the cut in interest rates to record lows.?
The Halifax?s house price index shows that the average UK house price fell 1.9 per cent to ?157,326 in March this year.
