Housing affordability improves

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Housing affordability improves Posted On 27 February 2019

According to Rightmove’s House Price Index for February 2019, the national average asking prices of newly-marketed property has risen by 0.7% (+£1,981) during February

This rise is said to be consistent with the recent norm for this time of year which saw an average 0.6% February uplift over the previous two years. However, Rightmove has indicated that as we enter the traditionally more buoyant spring market, the average annual rise of 0.2% (+£714) is the most subdued that they have recorded at this time of year since 2009.

As a result of this, and with average wage growth now running at an annual rate of 3.4%, buyer affordability is said to be improving at the fastest rate against average new seller asking prices since 2011.

“Longer daylight hours and green shoots appearing in gardens herald the start of the traditionally more buoyant spring market,” comments Miles Shipside, Rightmove director and housing market analyst.

“Sellers’ subdued pricing is now being outstripped by higher average wage growth, meaning that buyer affordability is on the rise at the fastest rate in nearly eight years. Buyers are also being given the leg-up by cheap mortgage rates, if they can meet lenders’ criteria and lay their hands on a large enough deposit.”