Further falls 'needed for house prices'

Thu 11 Mar 2010 - Published in Mortgages

Housing prices need to fall further, despite affordability recently improving, an expert has suggested.

Figures from Zoopla.co.uk showed that the average UK employee can now afford 58 per cent of properties in the country, growing from just 34 per cent in 2007.

Commenting on the findings, PricedOut.org.uk spokesperson Katy John claimed that they need to fall even further to help first-time buyers gain a foothold on the property ladder.

"Whichever government gets into power at the next election needs to do more to increase housing affordability for first-time buyers," she added.

In addition, the expert said the housing market needs to become more sustainable, in order to prevent another property boom similar to the one which has been seen over the past decade.

Ms John recommended a range of measures, such as building more homes, sensible lending policies and further taxation on the buy-to-let industry, to avoid this.

The Zoopla.co.uk research showed that Bradford is the most affordable city in the UK, while London is the least.

News Categories

News Archive

News: Further falls 'needed for house prices'