Property affordability reaches seven-year high

The average UK income earner can now afford to buy 58% of all homes, up significantly in comparison to the property market peak in 2007, when just 34% of homes were affordable.

The current levels were last seen in 2003 when the affordability rate was 56%. Over the past 10 years, affordability levels reached their highest point in 2002 at 66% and then fell steadily over the next five years.

The most affordable markets were generally in the North and the least affordable were in the South.

Bradford was revealed as the most affordable UK city as 82% of homes could be bought for residents on the average local income. Hull came second with 81% of homes now deemed affordable.

London tops the list of the least affordable housing markets in the UK with only 32% of homes affordable for residents. Southampton was second with 44%.

Nicholas Leeming, commercial director of Zoopla, commented: "We are at levels of affordability not seen in the UK housing market for almost seven years which makes it a great time to buy, especially if current low interest rates can be locked in by the borrower."

Zoopla calculates the affordability rate using median incomes and average house prices in each geographic area along with mortgage rates. A home is judged to to be affordable if one third of the median income is sufficient to cover mortgage repayments.

In 2002 using one third of income to meet mortgage repayments allowed a purchase of £118,934 whereas today, given the current low financing costs and increased incomes, the same proportion of income finances a purchase of £188,423.