New research shows that the number of towns around the UK where first-time buyers can afford to buy homes is at its highest point in eight year.
Figures from Halifax's annual First Time Buyer Review show that the proportion of towns and cities that are affordable by first time buyers is the highest it has been since 2003.
In June 2011, the average house price paid by a first-time buyer (currently £135,091) was affordable for someone earning average earnings in 48% of all local authority districts. In 2007 that figure was just 6%.
However, the figures also reveal a sharp divide between the north and south of the UK. in the north 80% of local authority districts had affordable housing compared to just 8% in the south.
The Countryside Alliance has also highlighted a further disparity in the availability of affordable housing.
The Alliance's study of figures from local authority housing needs surveys and council development plans for affordable homes shows a shortfall of nearly 60,000 affordable units in 2010/11 for England's rural areas.
Of the 158 rural and semi-rural councils in England, 135 or 85 per cent responded. The delivery targets set for 2010/11 amounted to just 17,208 or 22 per cent of the identified need.
Rural housing remains less affordable than in urban areas where average prices are 5.4 times average annual earnings in the countryside. Those young people unable to find homes often move to urban areas, placing a further strain on affordable housing in towns and cities. Alice Barnard, Chief Executive of the Countryside Alliance, warns that if the rural need for affordable housing is not met, "many of those communities upon which our countryside depends will shrivel and die."
Older people are increasingly selling their homes and moving into rented properties to boost their income, new research says.
The latest research by tenant referencing specialist, HomeLet, reports that there has been a 16% increase in the number of people aged between 66 and 70 who have sold their home and become tenants over the past 12 months. Data gathered from over 3000 letting agents also reveals that 43% of new tenants aged over 66 were previously living in a home they owned, compared to 37% in July 2010
Rising living costs and under-performing pensions seem to be fuelling the numbers of those hoping to release equity from their properties to support themselves.
John Boyle, Managing Director of HomeLet, said:
"Pensioners are already feeling the pinch with the spiralling costs of fuel, energy bills, and basic food. Combined with a reduction in income, old people are increasingly struggling to pay to live through their retirement. This suggests the number of pensioners having to sell their home to move into rented properties could increase even more over the coming years."
Joanne Segars, Chief Executive of the National Association of Pension Funds, said:
"Sadly many people get a rude shock when they retire and find themselves struggling for money, especially with the rising cost of living. Those without savings or a private pension are particularly hard-pressed, and may need to sell their home to unlock some cash. This can be very distressing."
"Others will have planned on using property as part of their pension and, having done well out of the housing boom, may be selling up to downsize or rent until the market settles."
It is a trend that is likely to continue as a YouGov poll for the National Association of Pension Funds (NAPF) recently showed that 43% of people who aren't retired say they can't afford to save for retirement, and over half (55%) are not confident they will have enough money in their old age.
The increased demand from pensioners is just part of a wider boom in renting. Since 2005, the number of households now privately renting has increased by 1 million to 3.4 million. This has pushed the average rental price of a UK property to it's highest level for over three years at £767 per month.
