First-time buyers reap benefit of soft landing as affordability rises

FIRST-TIME home buyers are spending less of their monthly salary on mortgages in the first firm indication that house price affordability is improving.

According to new figures the average couple buying their first house now need 24% of their combined after-tax salary to pay their mortgage compared with 26.4% at the end of last year.

A combination of wage increases and falling house prices is credited with the improvement, which has come despite eight mortgage interest rate rises in less than two years.