Lower interest rates have made house more affordable than at any recent time, Housing Minister Sir George Young sai...
Lower interest rates have made house more affordable than at any recent time, Housing Minister Sir George Young said yesterday.Speaking at the Westminster Club Luncheon, Sir George said: 'Lower interest rates have made houses more affordable than at any time for years. In 1990 the average first-time buyer needed to spend almost two-thirds of take-home pay on a mortgage. Now, according to the TSB affordability survey, the figure is down to about a quarter.
'We have seen tremendous regional disparities vanish too. With the cost of house purchase at historically low levels, helped by our success in bringing down interest rates, it must also be right that more households will be able to provide for their own housing needs, either as homeowners or in the private rented sector.
'Our expenditure plans will help that process, by providing new money for programmes of grants to council and housing association tenants to move out into the owner-occupied sector, releasing their home for reletting.