Disposable income is set to hit an all time high according to research by mortgage specialist Savills Private Finance.
Lower interest rates means mortgage payments have fallen to 16 per cent of the average household's disposable income compared to 45 per cent in 1989.
With further rate cuts expected Savills predict this could fall to an all time low of 13 per cent by 2000.
The research also suggests there is a growing demand for rented property as a result of soci-economic factors. To support this theory it points to the fact that the average age of a first time buyer has risen to 30 today from 21 in 1988.
Savills Private Finance is a subsidiary of Savills the international property consultants. The company specialise in bespoke mortgages for investment and owner occupation purposes.