Homes 'more affordable' than in 2007

Homeowners who have invested in a conservatory or kitchen extension in order to make their property more appealing to prospective buyers may find there is greater interest after the Halifax suggested houses are now more affordable than in 2007.

The building society's Affordability Review tracks how easy it is to obtain finance and looks at other variables, such as house prices, before deciding how difficult it is for homebuyers to be successful.

It suggests it is now easier than in mid-2007 to buy a property - mainly as a result of a fall in the proportion of disposable earnings devoted to mortgage payments.

The first quarter of 2009 saw the proportion drop below the average of 37 per cent to 31 per cent - a fall from the high of 48 per cent in 2007's quarter three.

"There has been a marked improvement in housing affordability across the UK over the past 18 months," explained Halifax housing economist Martin Ellis.

He added the mortgage payment reduction was mainly down to a decline in house prices and the cut in interest rates.

The Department for Energy and Climate Change recently asserted the majority of UK homeowners are in favour of government plans to help make the country's residential properties more eco-friendly.