Mortgage affordability for UK homebuyers reached its most challenging point since 2008 last year, a leading industry body has revealed.
Figures from UK Finance show that the average homebuyer across the country dedicated just over a fifth (21.3%) of their gross income to mortgage payments, marking the highest proportion recorded in 15 years.
Certain regions experienced even greater strain, with North Norfolk in East Anglia identified as the least affordable local authority, requiring 25.7% of gross income for initial mortgage payments.
The London borough of Hillingdon also saw new borrowers typically spending over a quarter of their gross income.
Other areas facing significant pressure included London commuter belt towns such as Luton (24.9%), Slough (24.8%), and Spelthorne (24.8%).
Conversely, the most accessible areas for homebuyers were found in Scotland, notably East Ayrshire and Inverclyde.
UK Finance also highlighted that the City of London, despite its limited residential stock, ranks as relatively affordable due to its high-earning buyer profile.
James Tatch, head of analytics at UK Finance, said: ”It’s been challenging times for those trying to buy a property in recent years, with affordability pressures weighing heavy.
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“But the pain is not felt equally across the country. Property prices, wages and demographics vary greatly across and within regions.
“All of these have an impact on affordability and if you’re a landlord, how profitable your investment property is.
“The UK housing market faces both challenges and opportunities at a national and local level, and understanding these local markets enables better decision-making from government, local authorities and others.
“We look forward to continuing our work with these stakeholders to improve the mortgage market.”
UK Finance said 723,000 house purchase mortgages were handed out in 2025, marking a 17% annual increase.
Earlier this year, mortgage rates jumped amid market uncertainty because of the conflict in the Middle East. Mortgage rates have been gradually easing down in recent weeks, but remain elevated.
Mary-Lou Press, president of NAEA (National Association of Estate Agents) Propertymark, said: “Higher interest rates and the challenge of saving for a deposit mean many people who could afford monthly repayments are still locked out of buying.
“It’s no longer just about income; access to upfront cash is becoming the biggest barrier.
“Property professionals are also seeing clear regional differences.
“In more affordable parts of the UK, buyers are still active, but in higher-value areas such as London and the South East, stretched affordability is having a much greater impact, slowing activity and forcing buyers to adjust expectations.”
Aneisha Beveridge, head of research at Hamptons, said: “Homeowners in London’s commuter belt are among those feeling the impact of higher mortgage rates most sharply.
“These are areas where a much larger share of households rely on a mortgage, especially compared to central London.
“It’s also where first-time buyers and upsizers are stretching the hardest to get a bit more space, often pushing loan-to-income multiples to make the numbers work.
“That said, it’s worth keeping some perspective. For many renters, spending this proportion of income on housing would feel like a step forward.
“Even with rates edging up again over the last month, owning with a mortgage is still often cheaper than renting, so affordability challenges are increasingly about access and upfront barriers, rather than just the cost of monthly repayments.”
Here are the least affordable areas identified by UK Finance, with mortgage payments as a percentage of income:
1. North Norfolk, 25.7%
2. Hillingdon, 25.1%
3. Luton, 24.9%
=4. Slough, 24.8%
=4. Spelthorne, 24.8%
6. Havering, 24.6%
7. Harrow, 24.5%
8. Broxbourne, 24.4%
9. Barking and Dagenham, 24.3%
10. Harlow, 24.2%
Here are the most affordable areas identified by UK Finance, with mortgage payments as a percentage of income:
=1. East Ayrshire, 17.0%
=1. Inverclyde, 17.0%
3. City of London, 17.1%
4. North Ayrshire, 17.2%
5. West Dunbartonshire, 17.7%
6. Eilean Siar, 18.0%
=7. Mid Ulster, 18.2%
=7. Causeway Coast & Glens, 18.2%
=7. South Ayrshire, 18.2%
10. Dumfries and Galloway, 18.3%
