First Time Buyers (FTB) affordability has improved substantially
This according to the Halifax FTB affordability review. It stated the house price to earnings ratio is the lowest it has been for 6 years. Martin Ellis housing economist for the Halifax said:
"There has been a marked improvement in housing affordability for potential first-time buyers in many parts of the UK over the past 18 months. This trend continued in the first three months of 2009. The significant reductions in house prices, relative to average earnings, has resulted largely from the decline in house prices since the autumn of 2007. As a result, housing is at its most affordable, on this key measure, for more than six years."
In addition to this the proportion of disposable income used to pay for mortgages has also decreased.
This must all be positive for people who want to sell their house fast and are looking for first time buyers who can raise the cash to buy a house. So our question is that if affordability is at its highest since 2007 and people have more disposable income, are we likely to see more quick property sales and a swift recovery in house prices?
All positive news is welcome, but with increasing unemployment and low consumer confidence coupled with what can be only described as illusive mortgage finance, then having buyers who can afford to buy is not enough to kick start a recovery. At least it is a step in the right direction.
For those who are looking to sell their house and who want to avoid the stress, ambiguity and uncertainty of the open market sale then Rapid Home Solutions (RHS) can help. Here at RHS we cash buy houses and in doing so we can guarantee that you can sell your house quickly.
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The opinions expressed in all news articles are those of Rapid Home Solutions Ltd. The material is for general information only and does not constitute investment, tax, legal or any other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. |