City homes become more affordable – Halifax

Based on its own data, £150,000 could now purchase a semi-detached property in five out of the ten largest British cities, compared to just one at the end of 2007.

For those further up the property ladder, a budget of £250,000 could now buy all property types in half of the 10 biggest cities in Great Britain, compared to two in 2007.

London is the only major British city where the average price of all property types remains above £250,000.

Other findings from Halifax’s research reveals that over the last three years, property prices in towns located in southern England have generally outperformed the rest of the country.

In contrast, the eight towns that saw the biggest house price falls since 2007 are all in the North.

Martin Ellis, housing economist at Halifax, said: "The higher performance of the housing market in southern England over the last three years reflects the stronger economic performance of this part of the country compared with the rest of the UK.

"Looking forward nationally, we expect limited movement in house prices overall this year but with the risks on the downside."

While only 6% of the towns surveyed saw a rise in house prices over the past three years, Martin suggests that opportunities remain for both homeowners and prospective buyers.

"It is important to remember that those buyers who bought their home five or more years ago are likely to still have a healthy level of equity in their property," Ellis said

"On the buyer side, monthly mortgage costs have now nearly halved from their peak in 2007, when 50% of a typical first-time buyer’s income was devoted to paying their mortgage."

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