Housing affordability in the 海角视频 has been gradually improving due to slower house price growth compared to wage growth, coupled with a decrease in mortgage rates.
House prices increased by 2.4 per cent in the year up to July, as per Nationwide's most recent house price index, while wage growth was at five per cent, as reported by .
The cost of an average 海角视频 home is approximately 5.75 times the average income – significantly below the all-time high of 6.9 recorded in 2022 and currently the lowest in over a decade.
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"Housing affordability, which markedly deteriorated in the aftermath of the pandemic, has been progressively improving," stated Robert Gardner, Nationwide's chief economist.
"Despite broader economic uncertainties in the global economy, the underlying conditions for potential home buyers in the 海角视频 remain favourable," he further added.
The interest rate on a typical five-year fixed-rate mortgage is around 4.3 per cent for a borrower with a 25 per cent deposit.
This is still more than three times the all-time lows seen in autumn 2021, but well below the highs of around 5.7 per cent reached in late 2023.
Verona Frankish, CEO of Yopa, stated that the improvements in mortgage market affordability, along with the government's new Mortgage Guarantee Scheme, should "help ensure that buyer activity remains consistent and house prices continue to strengthen".
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Savills has suggested that more relaxed mortgage lending rules could result in first-time buyer deals increasing by a quarter in the next five years.
"However, it's important to remember that the homebuying process remains challenging for many, and while market sentiment is positive, sellers must remain realistic when pricing for current market conditions if they wish to secure a sale," Frankish said.
'Overarching air of positivity'
Experts anticipate house prices will climb steadily throughout the year, bolstered by improved access to the housing market.
"We can expect continued stability in house prices for the remainder of the year, as more buyers look to make their move," director of Benham and Reeves, Marc von Grundherr, said.
"This overarching air of positivity has been driven by buyers returning with confidence," he added.
Matt Thompson, head of sales at Chestertons, said that many estate agents feel that the property market now provides a "window of opportunity" as more properties are up for sale.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said that transactions are "holding together" on the ground.
"Looking forward, we expect to see a modest improvement all round, particularly if interest rates are reduced in the next month or so as widely expected, despite lingering concerns about the economy."