Monthly mortgage payments as a proportion of income are now nearly half of 2007 levels, yet affordability is still cited by over 50% of first-time buyers as the main barrier to entry.
Research by Halifax reveals the proportion of new homeowners' disposable income going towards to mortgage payments has fallen from a peak of 50% in June 2007 to 28% in June 2010. This is well below the 34% average over the past 25 years. The marked improvement in monthly mortgage costs has been a result of a combination of lower house prices and interest rate reductions. However, only 35% of first-time buyers are taking advantage of the situation. First-time buyer numbers for H1 2010 (94,600) are half that for the same period in 2007, but up 28% on H1 2009. In addition, 94% of firs...
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