Nearly half of local authorities, 45 per cent, have a house price earnings ratio of six or more, up from 35 per cent five years ago, showing that affordability is becoming increasingly stretched.
According to Nationwide’s local affordability report, it also found that 14 per cent of localities have a ratio of below four, which is down from 22 per cent five years ago.
It also found that first-time buyer earnings ratios have increased in 72 per cent of authorities.
However, the report revealed that around a quarter of local authorities have improved affordability compared to 2016.
Nationwide said London had the greatest gap between the least and most affordable local authorities, from seven to nearly 15 on the house price to earnings ratio.
North East had the smallest gap between least and most affordable boroughs, ranging from around three to just over four on the house price earnings ratio.
The least affordable area to live is Kensington and Chelsea with a house price to earnings ratio of 14.7. This was followed by Oxford with a ratio of 10.1 and Hertsmere in the East of England with a ratio of 10.
The most affordable area in the UK was East Ayrshire in Scotland with a house price earnings ratio of 2.4.
The second most affordable area in the UK was Copeland in the North West of England at 2.8 and Country Durham in north East at 3.1.
The report continued that Westminster had seen the biggest improvement in affordability from 2016 to 2021, with house price earnings ratio falling from 18.1 to 14.3.
Cambridge’s house price earnings ratio also decreased from 10.3 to 8.8 in the same period, and Reading’s ratio has gone from 7.6 to 6.4.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.