Housing affordability improves dramatically

Housing affordability has improved dramatically since boom turned to bust, according to the latest figures from the Bank of Spain.

Housing affordability, known in Spain as the “economic strain” of buying a home, fell to 28pc of gross household income in 2012, down from 42pc in the boom.

By the end of last year, Spaniards were paying 5.9 years worth of household income on buying a home, down from 7.5 years at the top of the boom.

Experts recommend that families dedicate no more than a third of their income on housing, so by that measure Spanish housing now looks reasonably priced.