Wednesday, 30 March 2011

Affordability remains an issue in terms of the housing market.

 

Mortgage lenders are now a lot more careful in terms of lending.
 
Unemployment and a high competition for jobs, with the threat of loss
 
remain critical.
 
For example, the average deposit on a home has increased from 10% of the
property’s value to 21%. An  average worker would need about eight years to accumulate
 
a sufficient deposit for an average house.
 
However, the basci issue is that housing is more

expensive on a number of areas, which is keeping furture

buyers on the sidelines. House prices are currently around five

times average incomes, in comparison to the average of

four. A buyer will typically spend about thirty percent of his salary on a mortgage.
 
 

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