Buyers are spending a larger proportion of their income on mortgage repayments than at any point since the financial crisis of 2008, it has been revealed.

It means affordability pressures is impacting demand in many regions in Britain’s housing market.

The latest analysis from UK Finance, the trade body for the banking and finance industry, shows homebuyers are now spending an average of 21.3% of their gross household income on initial mortgage repayments.

Affordability pressures weighing heavy.”

James Tatch (main picture), its Head of Analytics, says: “It’s been challenging times for those trying to buy a property in recent years, with affordability pressures weighing heavy.

“But the pain is not felt equally across the country. Property prices, wages and demographics vary greatly across and within regions.”

Affordability pressures are particularly acute in East Anglia and the London commuter belt. North Norfolk was the least affordable local authority, with borrowers spending 25.7% of gross income on mortgage repayments, followed by Hillingdon at 25.1%, Luton at 24.9%, Slough at 24.8% and Spelthorne at 24.8%.

Wider concerns

It comes at a time of wider industry concerns about the impact of elevated borrowing costs and geopolitical uncertainty on the housing market.

As reported in The Negotiator, house prices fell again last month, with Amanda Bryden, Head of Mortgages at Halifax, warning: “Property price trends continue to reflect the uncertainty linked to developments in the Middle East.

“Despite recent cuts to mortgage rates, higher inflation expectations have kept borrowing costs above the level seen at the start of the year, continuing to stretch affordability for many buyers and temper demand.

The full UK Finance Lending Where We Live report is available here.