Although the housing market is showing signs that it is stabilising, restrictions on people’s incomes will continue to create challenges, it has been suggested.
Commenting on the Halifax house price index for September, chief economist Martin Ellis said that the overall price decrease was similar to that of the past three months, indicating that things are starting to even out.
However, he added that “ongoing pressures on householders’ income … will mean that market conditions will remain challenging”.
Average earnings have risen at an insufficient rate to cover rising property, food and fuel prices, the organisation noted.
This “pinch” on people’s incomes has made it hard for them to break into the property market, it added.
Meanwhile, young people, particularly students and recent graduates, have been offered advice on remaining debt free by David Kuo, head of personal finance at Fool.co.uk.
He urged them not to pay for goods on a credit card if they could not afford them in cash.
By Jamie Price