Propertymark has warned that improving housing affordability does not necessarily mean more people can afford to buy, with mortgage rates, deposit requirements and purchasing costs continuing to restrict demand.
The trade body’s chief executive, Nathan Emerson, said the latest figures from Zoopla highlight the gap between properties being affordable on paper and buyers having the financial means to purchase them.
Zoopla’s research shows that 51% of Britain’s two and three-bedroom houses are now within reach of households earning an average income, up from 45% a year ago.
However, average mortgage rates have risen above 5%, compared with around 4% at the start of the year. Sales agreed are also running 9% below last year’s levels.
Emerson said: “While the increase in homes within reach of average-income households is encouraging, affordability on paper does not necessarily mean buying is financially achievable. Mortgage rates, deposit requirements and the wider costs of purchasing remain significant barriers for many prospective buyers.
“The figures also highlight stark regional differences, with buyers in some areas enjoying greater choice while high prices continue to limit options in London and the South East. Estate agents play an important role in helping buyers understand local market conditions, assess their budgets and navigate the purchasing process.
“Ultimately, improved affordability is a positive step, but turning this into homeownership depends on access to suitable properties, realistic pricing and the ability to secure finance. The reality for individual buyers will always depend on their financial circumstances and where they want to live.”
