Research by Alexander Hall has found that only 8% of local authorities in Britain have average house prices within the affordability threshold for potential mortgage borrowers.
The analysis considered average earnings and assessed whether homebuyers could secure a mortgage with a 15% deposit using an income multiple of 4.5-times.
In five out of 12 British regions, there was not a single local authority where a typical home buyer could obtain a mortgage based on 4.5-times their earnings.
These regions were the East Midlands, East of England, London, South East, and South West.
Scotland had the highest potential for mortgage eligibility, with 35% of local authorities having average house prices that fall within the 4.5-times income criteria.
The North East followed with 33%, while the North West had 17%, Wales 14%, Yorkshire and the Humber 13%, and the West Midlands 3%.
With joint income considered, 82% of local authorities across Britain became affordable at 4.5-times earnings.
This climbed to 100% for local authorities in the East Midlands, North East, North West, Scotland, Wales, the West Midlands, and Yorkshire and the Humber.
Despite some areas remaining out of reach for homebuyers with joint incomes, many areas in the East of England (79%), South West (70%), and South East (63%) were still deemed affordable.
In London, however, even with a joint average income, buyers could only afford to purchase in 30% of local authorities based on 4.5-times this combined income.
Stephanie Daley, director of partnerships at Alexander Hall, said: “Higher interest rates have somewhat dampened property market performance in recent years and we’re only now seeing house prices start to recover with respect to consistent levels of positive growth.
“Despite this, property values remain close to historic highs and affordability continues to be a key issue for many homebuyers.
“This is down to the fact that earnings growth simply hasn’t been sufficient enough to help bridge the gap and so for many, what they are able to borrow isn’t sufficient enough to cover the value of the home they wish to buy.”
Daley added: “As a result, we’re seeing more lenders continue to think outside the box and drive innovation within the sector in order to assist homebuyers with their aspirations of homeownership.
“This includes initiatives such as enhanced affordability, allowing some borrowers to potentially secure up to 5.5 times their income.
“This extra leverage can make all the difference in many locations across the market, or it can help existing homeowners when it comes to creating that extra bedroom or all-important outdoor space.
“By speaking to a mortgage adviser, we can look to maximise the income used for affordability and use deals with more generous affordability assessments in order to get buyers into their dream home.”
