Halifax: First-time buyer affordability is at eight-year high

Halifax: First-time buyer affordability is at eight-year high

A study carried out by the Halifax has revealed that affordability of homes for first-time buyers is at its highest level for eight years.

The First-Time Buyer Review calculates affordability based on prices lower than people on average earnings in a given area can pay, taking as its base the historical average price-to-income ratio of four.

It was found that homes were affordable for someone on average earnings in 44 per cent of all local authority districts in Britain, the best result since 2003 and up from 42 per cent in 2010 and only five per cent in 2007.

The figures are also based on single incomes, so are conservative given that many people will be making purchases as a couple.