First time buyers have the widest choice of affordable locations in a decade, according to banking giant Halifax.
In its latest First-time Buyer Review, the average house price paid by a first-time buyer in June 2012 was “affordable” for someone on average earnings in 54 per cent of all local authorities, up from 40 per cent a year ago and almost eight times the proportion of affordable authorities in 2007, when the figure was just 7 per cent.
The report also reveals that the increased affordability has increased the number of first-time buyers over the past year.
Halifax estimates that there were approximately 114,000 first-time buyers in the first half of 2012, up by 34 per cent from the same period in 2011 – 85,600. This figure is still well down on a decade ago when the figure was 244,700.
Halifax housing economist Martin Ellis said: “With first-time buyers forming a vital part of the housing market, it is clearly encouraging that the number of those getting onto the property ladder for the first time may well increase this year.
“However, the continued uncertainty over the outlook for the UK economy and the difficulties faced by many in raising the necessary deposit remain significant hurdles for those wishing to buy their first home.”
Other developments to arise from the report include the increasing north-south divide, with just 9 per cent of the affordable local authorities in the south, compared to 91 per cent in the north, where the north east is the most affordable, followed by the north west.
