North 'more affordable than south' for houses

Landlords property insurance may be better taken out on homes in the north by buy to let investors that want to expand their portfolio, as new research has revealed abodes are more affordable there than in the south.

The Halifax First-Time Buyer Review found the the average house paid for by those purchasing their initial domicile is achievable for those on typical earnings for their area in 44 per cent of all local authority districts.

In the north, this figure rises to 75 per cent compared with five per cent in the south.

This means the property market is at its most affordable to individuals taking on their first home for eight years, yet it was also found the number of people in this position has dropped to its lowest level since 1974.

"Difficulties raising the necessary deposit and concerns over the economic climate are preventing many from entering the market," housing economist at Halifax Martin Ellis explained.

This could mean cheaper housing is available to landlords, while the first-time buyers that would normally be in competition for such abodes are forced to stay in rented property.

Next year may see this situation continue, with chief executive of the National Association of Estate Agents Peter Bolton King predicting it will remain difficult for individuals who have not purchased a domicile before to access finance in 2012.

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Posted by Luella Ravelin