In quarter 4 of 2008 the average one bedroom, first-time buyer’s flat was valued at £152,434, which would require an income of £44,558, This is assuming a 5% deposit for a mortgage at 3.25 times income but in reality most lenders would probably demand a 10% deposit..

This figure is a fall from an income of £47,678 needed in Quarter 3 of 2008 when the same flat would have cost £163,109 (6.5% more).

In the first quarter of 2008 the income needed to afford the same flat would have been just over £52,000. Land Registry figures show that the average house price in the city has fallen from a high of £235,844 in March 2008 to £202,191 in December 2008, a decrease of 14% taking prices back to September 2006 levels. Across the UK the average home now costs £157,226, at least £30,000 less than a year ago. 

Local prices have been reducing at a lower rate than national prices over the last few months with annual deflation of 13.8% and quarterly deflation of 8.4%. Average prices in the city are still 27% higher than those nationally, which have fallen back to October 2005 levels. Sales are at their lowest levels since before 2001.

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