6
Sep
Home affordability at a 12-year high, says Halifax
Home affordability has hit a 12-year high, the Halifax has
said.
Nationally, typical mortgage payments on a new mortgage cost the
borrower 28% of their average disposable earnings.
This is the lowest level since 1999, and is down by almost half
from a peak of 48% of average disposable earnings in quarter three
of 2007.
Falls in house prices and mortgage rates have led to the
improvement in affordability in every single local authority
district. In 16 areas, affordability has improved by 50% or
more.
The least affordable area, not too surprisingly, is Kensington
and Chelsea in London, where average mortgage payments on a new
loan account for 75% of average local earnings.
Six of the ten most affordable local authority districts are in
Scotland, with the other four all in the North.