Source: http://www.findaproperty.com Affordability continued to be an issue, said the report, with average earnings having risen at a slower rate than the Retail Price Index. Added to that, the increased costs of fuel (40 per cent) and food (11 per cent) over the past year have led to a significant downfall in householder's discretionary income.  But despite the ongoing decline in house prices and available finance, the Halifax report also offered up some happier news. The house price to earnings ratio - a key measure of affordability - is improving significantly, having now fallen by 16 per cent from its peak in July 2007. Housing market activity was also showing signs of improvement, this was the third consecutive month that approvals for house purchase had remained broadly unchanged. However, the quarterly picture wasn't quite so positive, with approval figures having dropped by 25 per cent between Q2 and Q3 2008. Commenting on the report, Martin Ellis, chief economist at Halifax, said: "Housing market conditions remain challenging in the face of the significant pressures on householders' incomes and the reduction in the availability of mortgage finance since last summer. "But housing affordability is improving significantly. The house price to average earnings ratio has fallen below 5.0 for the first time in four and a half years. We expect a further improvement in the ratio over the coming months."