Monday, September 14, 2009
Lower house prices have not meant improved affordability
90% of UK households are potentially eligible to access state aid to cover their housing costs. In the UK, Â£60,000 of household income is now the accepted limit for eligibility for access to most shared ownership schemes. Lower property prices have not meant improved affordability. Despite house prices falling by 15% or 20% on average, the proportion of a buyerâ€™s income required to secure a mortgage, has only come down 1% - 24% of a buyerâ€™s income was required to secure a mortgage at the peak in 2007 and now it has only come down to 23% by mid 2009, despite the fact they need to secure larger deposits than in the past.