Has the Credit Crunch made Homes Affordable Again?

Affordability of property typically relates to how much the average property is worth versus what the average wage is. When this ratio is more than three or four, the statistical reports announce that ‘affordability’ is impossible for most people.

It is true that the cost of housing has increased in the UK and that despite the current circumstances, it is likely to increase again once the economy is on the road to recovery and people’s jobs seem more secure and the future more optimistic.

The big problem with affordability studies is that they take into account average statistics – which as anyone reading anything I’ve written on property before knows, this is rubbish. Read on to find out why!