House price affordability improves, but average first-time buyer still paying five times salary

Last year, wages outpaced house price growth, leading to a slight improvement in affordability for buyers in the UK, with first-time buyers still paying five times their annual salary for a property. Despite a decrease in mortgage rates, high borrowing costs remain a barrier to home ownership, with the average mortgage rates exceeding 5%. Data shows that 40% of first-time buyers received help with a deposit, mainly from family or friends, due to rising rents. Older homeowners also face challenges, with many facing higher mortgage costs as fixed-rate deals end, highlighting the importance of home ownership for retirement resilience.

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