Propertymark has cautioned that an improvement in housing affordability does not automatically translate into more people being able to purchase a home. The trade body highlights that mortgage rates, deposit requirements, and other purchasing costs are still limiting demand from prospective buyers.
Nathan Emerson, Propertymark's chief executive, stated that recent figures from Zoopla show a gap between properties being affordable "on paper" and buyers having the financial capacity to complete a purchase. Zoopla's research indicates that 51% of two and three-bedroom houses in Britain are now within reach of households earning an average income, an increase from 45% a year ago.
However, average mortgage rates have climbed above 5%, up from approximately 4% at the beginning of the year. Additionally, the number of sales agreed is 9% lower than last year's figures. Emerson noted that while increased affordability is a positive development, turning this into homeownership depends on access to suitable properties, realistic pricing, and the ability to secure finance.
He also pointed out significant regional differences, with buyers in some areas having more choice, while high prices continue to restrict options in London and the South East.