Halifax 2009 Affordability London
18 April 2009
This is the first Halifax review assessing the affordability of housing for all homebuyers in Greater London. Updates will be issued quarterly. The affordability calculation used in this analysis measures the degree of difficulty faced by a potential new borrower in entering the local housing market dependent on current local average house prices and average earnings, and mortgage rates. The calculation is based on a single income and is, therefore, conservative. House prices in Greater London fell by 16%, on average, in 2008 and are expected to decline again in 2009. Prospective homebuyers should factor the likelihood of further house price falls into their calculations when deciding whether or not to buy.