According to the Skipton Group Home Affordability Index, created in partnership with Oxford Economics with data from Skipton Group, ONS, Bank of England and other third-party sources, said that for first-time buyers earning £22,850 per year or less only one in 100 can afford to buy this first home.

The index, which has a live tool, looks at the affordability of buying a home and living in a home over time and combines them into one metric out of 100. The higher the number the more affordable an area.

For prospective first-time buyers earning £71,250 per year or higher, only 44% can afford to buy a first home in their local area.

The report continued that around 80% of first-time buyers do not have sufficient savings to buy their first home in their local area.

Around four in 10 renters spend 45% or more of their income on essential housing costs, aggravating the challenge of saving for a deposit.

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First-time buyer affordability levels are worst in the West Midlands due to low deposit and moderate house prices and London, which is mainly due to high house prices. Wales also ranked poorly due to low income levels.

First-time buyers have the best prospects in Scotland due to lower house prices and the East of England, due to above-average income to house price ratios.

Skipton Group CEO, Stuart Haire, said: “Being able to have somewhere to call home is widely recognised as one of the most important issues facing millions of people up and down the country. But to fully understand the problem, we felt we needed to move beyond the examination of house prices, income, and rent to a deeper understanding of what is driving overall housing affordability. That’s why we created the Home Affordability Index.

“For some, our findings paint a bleak picture, notably for first-time buyers. The combination of high housing costs, insufficient savings, and significant regional disparities underscores the urgent need for collaborative and targeted interventions to support aspiring homeowners.

“The scale of the housing affordability challenge is so great that no one person can lead that charge, so we are calling on the government to work cross department, cross Whitehall, cross sector and cross industry, so that together we can really start to solve an issue that impacts so many people. We stand ready to be part of those efforts”.

Alex Stewart, associate director, Oxford Economics, said: “The Skipton Group Home Affordability Index highlights the challenges faced by households across Great Britain. It combines data on the affordability of purchasing and running a property to provide a comprehensive picture of housing affordability.

“The economic shocks of the last four years have led to fluctuations in the Index, but our analysis shows that housing affordability today is broadly unchanged compared to the start of this decade.

“For those who want to explore affordability in their area, Skipton’s interactive tool brings the challenge to life, allowing first-time buyers and existing homeowners the chance to see where they might be able to afford.”