Halifax has given some good news to
first time buyers, after announcing housing affordability has trebled since prices began falling 18 months ago.
Someone with average earnings can now afford to buy their first house in 21% of local authority areas, up 15% on last year.
The house price to earnings ratio is also at its lowest level in more than six years, making it easier to get on the property ladder.
On top of this, the amount of disposable income needed by first time buyers to cover mortgage repayments has dropped from its peak of 48% to 31% during the first quarter of 2009.
Martin Ellis, housing economist at the Halifax, feels there has been a marked improvement in housing affordability since 2007.
The significant reductions in house prices, relative to average earnings, has resulted largely from the decline in house prices since Autumn 2007.
Despite houses becoming more affordable, fewer first time buyers are attempting to get on the property ladder.
The recession means banks are reluctant to offer people mortgages without a substantial deposit.
The Council of Mortgage Lenders have released figures showing only 9,400 people bought their first home in February, nearly half as many as last year.
Halifax is expecting conditions in the housing market to continue to be tough for the rest of the year.
Mr Ellis said: "Increasing unemployment and low consumer confidence...are likely to exert downward pressure on the market over the coming months."
"Prospective first time buyers should factor the likelihood of further house price falls into their calculations when deciding whether or not to buy."
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