House prices 'need to fall further'

The government needs to do more to help first-time buyers afford to take their first steps on the housing ladder, one sector commentator has claimed.

Katy John, spokesperson for PricedOut.org.uk, said house prices still need to become more affordable to such buyers, despite recent declines.

"We need clear measures in place to create a more sustainable, affordable housing market and prevent another property boom like the one we have seen over the last ten years," she added.

Ms John went on to note that to successfully return to levels of affordability which will encourage first-time buyers back to the market, the underlying causes of this boom needed to be addressed.

Her comments came after Zoopla.co.uk asserted the average worker can now afford 58 per cent of properties in the UK, compared to just 34 per cent in 2007.

However, the National Housing Planning Advice Unit recently found that 90 per cent of couples with children living in London were unable to buy a home.

Such a figure may mean that Britons opt to look for flats to rent in the London borough of Wandsworth or elsewhere in the capital, as this could be far more affordable than buying a property.

Written by Chris Price

Published 11th March, 2010

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