Most affordable house prices in 25 years

WHAT a difference a burst property bubble makes?

While much of the decade was all about exorbitant house prices, latest figures show prices are now at their most affordable in more than 25 years.

The EBS/DKM economic consultants affordability index show that while prices today are on average three times higher than they were in the mid-1980s, house-owners are using less of their finances to pay their mortgage than at any point over the past 25 years.

The index shows the average working couple is paying slightly less today than during the lowest points of previous housing booms and busts, such as those in the second quarter of 1988 and first quarter of 1995.

The average, first-time buyer, working couple was spending 12.6% of their disposable income to pay for a home loan in December 2010.

This is less than the 13.4% rate in the second quarter of 1988, the 13.8% rates in the first quarter of 1995 and the massive 26.4% rate at the height of the Celtic Tiger boom in December 2006.

So not all bad news then.