Average home buying ability increases

remortgageThe ability to buy an average home in England and Wales got improved last year except in the South East. According to Hamptons International’s ability to buy latest quarterly report, first time buyers saw the largest improvement of all buyer groups. North East and Wales buyers had a biggest improvement in their ability to buy a home. On comparing with the third quarter in 2014, North East and South West have increased 17%. The house price growth is combined with reducing mortgage rates, which have also improved the ability to buy.

Fionnuala Earley, director of Residential Research at Hamptons International, says: “With inflation remaining low and wages increasing, most households are seeing their money draw out a bit further. While it’s encouraging that ability to buy is getting better year on year, with prices 5.5 times higher than incomes, it’s still very expensive to buy a home, and out of reach for many first-time buyers. The key to better affordability is for wages to increase considerably faster than house prices.”

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