News Tag: affordability
March 4, 2010
Reporting on its recent "Future Housing" conference the Council of Mortgage Lenders (CML) says it expects the UK to see a smaller proportion of homeowners and a higher proportion of tenants, mostly in the private sector, in the years ahead.
Changing consumer preferences and affordability pressures will drive the trend.
Examining the plight of first-time buyers, the CML’s head of research, Bob ...
Homeowners to be replaced by tenants
by Gill Montia
February 15, 2010
New research from the Council of Mortgage Lenders (CML) suggests why it has become harder for first-time buyers to enter the UK's property market in recent years, despite the "sea-change" decrease in interest rates since the early 1990s.
Falling interest rates should mean a rise in the size of mortgage that can be serviced from first-time buyers' incomes.
However, in the case of ...
First-time buyer affordability measures “overly positive”
by Gill Montia
January 14, 2010
Home buyers needed to use less of their income to cover their mortgage interest in November than at any time for more than five years, the Council of Mortgage Lenders (CML) has reported.
Home movers were particularly well placed, typically needing only 10.6% of gross income to cover mortgage interest payments, down from 11.1% in October.
According to the CML, ...
Mortgages at their most affordable in five years
by Gill Montia
January 3, 2010
Potential first-time buyers on average earnings can now afford to buy a home in nearly four out of 10 regions of the UK, the Halifax has reported.
According to the lender's research, 39% of the UK's local authority districts are accessible to those wanting to buy their first property, compared to 6% when the housing market peaked in 2007.
Halifax housing economist, ...
First-time buyer affordability best in 25 years
by Gill Montia
August 5, 2009
Halifax has reported a 1.1% rise in house prices in July, marking the second increase in the last three months and the third rise in the first seven months of 2009.
The lender's more reliable three-month-on-three-month measure now shows prices up 0.8%, the first quarterly increase since October 2007.
However, over the first seven months of the year the average value of a ...
Halifax reports 1.1% house price rise
by Gill Montia
July 6, 2009
Halifax has completed a round-up of seaside property prices in England and Wales in a survey that places all ten most affordable seaside locations in northern England.
Whitehaven in Cumbria comes top of the list, with the lowest average house price to earnings ratio in the first quarter of 2009.
Withernsea on the East Yorkshire coast follows, with Maryport in Cumbria taking ...
Halifax surveys affordability of seaside towns
by Gill Montia
May 7, 2009
In its latest First Time Buyer Affordability Review, Halifax has reported a significant improvement in the mortgage payments to earnings ratio.
For the average first-time buyer, mortgage repayments account for 31% of average income, down from a peak of 48% in 2007 and below the long-term average of 37% recorded over the past 25 years.
Furthermore, the house price to average ...
Affordability for first-time buyers below 25 year average
by Gill Montia
April 19, 2009
UK house prices are becoming increasingly affordable, especially for those who can stump up a substantial deposit.
Research from Halifax shows an improving trend over the past 18 months, in terms of the proportion of earnings spent on mortgage payments.
For new borrowers with 30% to put down, the proportion has fallen from a peak of 48% of earnings in late ...
Affordability blossoms for those with a 30% deposit
by Gill Montia
April 14, 2009
A leading research agency is predicting that the property market downturn will bottom out by Christmas.
According to a report in the Daily Telegraph, Lombard Street Research (LSR) is basing its forecast on affordability, which is now below the long-term average, reflecting the fact that prices have fallen by 20%, in nominal terms, in the past 18 months.
The firm's affordability index, ...
House prices could bottom out by Christmas
by Gill Montia
January 1, 2009
Potential first-time buyers are in a stronger position to purchase a home than at any time in the past five years.
According to Halifax, the first-time buyer affordability ratio has steadily improved during 2008 and the trend should continue in 2009.
Research from the lender indicates that the average house price to earnings ratio has fallen from a peak of 5.84% in July ...
Affordability ratios soften for first-time buyers
by Gill Montia
December 17, 2008
Abbey has changed its affordability calculations to take into account falling interest rates.
The lender has informed mortgage brokers that from today, it will no longer use its standard variable rate (SRV), which is currently 5.44%, to assess affordability but a new figure of 7%.
Abbey's SVR stood at 7.09% in October, prior to November and December's sharp cuts in the Bank ...
Abbey reassesses affordability as interest rates plummet
by Gill Montia
June 23, 2008
Rightmove has calculated that there are now over one million homes for sale in England and Wales.
According to the property website, the record number of homeowners eager to move include those anxious to make a sale before prices drop further and others who are keen to capitalise on the downturn by selling up and bartering with a ...
One million homes for sale in England and Wales
by Gill Montia
June 5, 2008
Research carried out for housing intelligence firm, Hometrack, illustrates the dire affordability issue still faced by potential first-time buyers, despite falling house prices.
The study, which was carried out by Professor Steve Wilcox from the University of York, shows that 28% of UK workers cannot afford to buy even the cheapest property available in their locality.
Those living in London and ...
Market downturn not enough to help first-time buyers
by Gill Montia
June 4, 2008
The Council of Mortgage Lenders (CML) has revealed that residents of Scotland are finding it easier to secure mortgages for new house purchases than homemovers in England and Wales.
In the first three months of the year, the proportion of home loans granted for purchases increased to 11%, up from 8% in the previous quarter.
According to Kennedy Foster, the CML's Scotland policy consultant, ...
Scotland bucks housing market downturn
by Gill Montia
April 17, 2008
Housing charity, Shelter, has published a report that highlights just how difficult it has become for first-time buyers to get a foot on the property ladder.
Affordability is the main issue: the average price of a home has risen over 200% in the past ten years, while the average income in the UK has increased by 53%.
According to the ...
First-time buyers locked out of property market
by Gill Montia
