Prices Fall, But Affordabilty Has Deteriorated!

According to the Times, it is harder now to get on the housing ladder that it was two years ago.

In two years the deposit needed to acquire the £135,343 average priced flat nationally has grown by 124 per cent to £33,883, as a result of the higher deposits being demanded by banks more concerned about mending their balance sheets than giving youth a chance. Affordability has deteriorated rather than improved — although property prices are lower. In London, where the average flat costs £228,628, the deposit required is £57,213.

Does this mean that prices need to fall further?