CML head of external affairs, Sue Anderson, said the good news for 2008 would be provided by the slowing of house prices, which would enable earnings growth to catch up, thus reducing the gap between earnings and house prices.
She commented: “It [the affordability gap] has been getting further out of reach, so to that degree it is good news for first-time buyers.”
On the other hand, she warned, the market uncertainty may put some potential buyers off.
Describing first-time buyers as “vulnerable” to issues of market sentiment, she said they may “feel a bit wobbly” at present.
Recent figures have indicated that house prices are falling. The November house price surveys from Halifax and Nationwide recorded declines in the average house price of 1.1 per cent and 0.8 per cent respectively.
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