The National Mortgage Index recorded the average income at £40,510 in June 2013, the highest level seen since the start of 2009. The average income needed to buy a house has risen by more than 10% in the Greater London, Midlands, North and South West regions. Only three areas – East Anglia, the South East and Wales – saw average incomes fall.

The average purchase price has risen 4.5% in the last year to reach £224,450. This caused the average loan size to grow by more than £3,000, reaching £158,456.

In the mortgage market, remortgage applications rocketed by 83% on June 2012’s figures. Loan-to-value ratios have steadily risen in this time, reaching 59.6% last month.

Product numbers continued to increase in the last month with 9,887 mortgages on the market at the end of June, the highest since November 2011.

Brian Murphy, head of lending at Mortgage Advice Bureau, said that government schemes like Help to Buy had returned confidence to the market.

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“June’s figures suggest that the first part of the jigsaw is firmly in place as far as a housing market recovery is concerned. The first installment of Help to Buy has whetted the appetite for property and sent buyers swarming to their nearest estate agent to see what’s on offer.

“Having almost 7,000 reservations under his belt will give George Osborne confidence when he steps up to play his next card and reveal the details of the mortgage guarantee scheme. It’s a crucial move that will open up the market to less affluent buyers if he gets it right and if confidence spreads to the construction sector.

“Reports that fixed mortgage rates will start to rise are turning out to be premature; in fact, I’d bet my house on further reductions over the summer.”