Residential properties are at their most affordable level in a decade, according to a new report. The Halifax's First-time Buyer Review reveals that the proportion of UK towns and cities which are affordable for first-time buyers has risen to its highest level since 2002.
The report also reveals that it's now affordable for someone on average earnings to gain a first foot on the housing ladder in more than half - 54% - of local authority areas in the UK. This is great news for prospective homebuyers seeking to buy a new home, especially when taking into consideration the fact that back in 2007, at the height of the housing boom, it was only affordable in 7% of UK regions.
Halifax estimates there were 114,000 first-time buyers in the first half of 2012, up by 34% from the same period in 2011, thanks in part to a rise in the volume of new homes incentives, such as FirstBuy and HomeBuy, along with an increase in the volume of affordable homes being developed.
Julie Meikle, process manager for the country's largest HomeBuy Agent, says that the report reflects the agency's experience, as the popularity of their affordable home ownership schemes increases.
Meikle comments: "We have seen a growing number of applications from first-time buyers keen to get their foot on the property ladder this year. In March, we saw a record 182 homes go through to completion as the stamp duty holiday came to an end. And in the first quarter of this financial year, almost five hundred households moved into a new home through our HomeBuy schemes.
"The availability of HomeBuy schemes such as FirstBuy and shared ownership, make home ownership more affordable, as the deposit needed by first time buyers is often reduced in comparison to traditional mortgages.
"Our applicants keep saying how amazed they are at how affordable owning their own home is through HomeBuy. We have interest rates at historic lows, increased mortgage availability and are seeing private rents rising. When you add it all up, it generally works out that home ownership is more affordable for everyone."