Affordability up for FTBs

Affordability for first time buyers (FTBs) has increased in November, according to the latest house price index.

Rightmove has revealed that property prices fell in nine of the ten regions of England and Wales, bringing the average property price down to £239,986.

That signifies a drop of 0.7 per cent, with annual inflation falling from 10.4 per cent to 7.9 per cent.

The only region that did not see prices fall was London, where the average house increased in value by 2.3 per cent.

The West Midlands saw the largest price fall (-2.4 per cent), followed by the south-east (minus two per cent) and Yorkshire & Humberside (-1.9 per cent).

"Prices are set to flatline in 2008. While we do not expect a price drop overall, there will be parts of the country that are over-priced and over-supplied for the likely levels of affordability and demand next year," said Rightmove's commercial director Miles Shipside.

"In these areas, motivated sellers are starting to cut their prices and will need to be the cheapest on the street to sell," he added.

Nationwide recently predicted that annual house price inflation would fall to zero per cent in 2008.

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