Homebuyers are facing renewed affordability pressures, with mortgage repayments taking up the largest share of household income since the 2008 financial crisis.
Analysis from UK Finance shows that buyers are now spending an average of 21.3% of their gross household income on initial mortgage repayments. The increase is making it harder for many people to afford a home and is contributing to weaker demand in parts of the housing market.
The strain is particularly pronounced in areas where property prices remain high relative to local incomes. East Anglia and several parts of the London commuter belt are among the regions feeling the greatest pressure.
North Norfolk was identified as the least affordable local authority, with borrowers spending 25.7% of gross income on mortgage repayments. Hillingdon followed at 25.1%, with Luton at 24.9% and both Slough and Spelthorne at 24.8%.
The figures come against a backdrop of elevated interest rates and wider economic uncertainty, both of which continue to weigh on buyer confidence.
For many would-be purchasers, the result is a more cautious approach. Some are reducing their budgets, delaying plans or stepping away from the market altogether as monthly repayments become harder to manage.
Housing market data also points to softer conditions. Prices fell again last month, while uncertainty linked to developments in the Middle East has added to concerns around inflation, borrowing costs and confidence.
Amanda Bryden, Head of Mortgages at Halifax, said property price trends continue to reflect that wider uncertainty.
For buyers, the latest figures show just how stretched affordability has become. For sellers and estate agents, they highlight a market where borrowing costs, pricing and confidence remain closely connected.
