The recent relaxation of mortgage lending rules will give buyers’ finances, and the wider housing market, a significant boost, says Stephanie Daley (pictured), Director of Partnerships at Foxtons’ broker Alexander Hall.

The mortgage advisory firm analysed average income data for homebuyers across England, calculating the maximum mortgage available under the original 4.5 x income multiplier and comparing it to the new 5.5 times income multiplier, which many lenders are now offering in response to relaxed regulatory rules.

5.5 x income

Previously, under the 4.5x limit, the average homebuyer with a £40,954 income could access a mortgage of up to £184,294. However, with the higher 5.5x income multiple now becoming widely available, the same buyer can now borrow up to £225,248 – a boost of £40,954.

In London, the change is even more pronounced. There, the average homebuyer earning £54,245 can now borrow an additional £54,245, increasing their maximum mortgage from £244,103 to £298,348.

In other areas, such as the South East, the East of England, and the South West, there have also been some substantial increases in purchasing power, which range between £36,125 and £44,464.

Affordability has long been one of the biggest barriers for homebuyers.”

Daley says: “Affordability has long been one of the biggest barriers for homebuyers, particularly in high-cost areas like London, where house prices have outpaced income growth.

“The recent reforms and lender changes have significantly improved what’s possible for many buyers, especially those who were previously unable to gather a large deposit or qualify for a mortgage.

“While there’s still work to be done to address housing supply and planning issues, these changes will open doors for many homebuyers who now have more choice and flexibility in securing their homes.”