Bromley has emerged as the most affordable borough in London for those trying to get on the property ladder.
Analysis by Nationwide Building Society found that the average first-time buyer home in Bromley costs around 6.2 times local earnings – significantly lower than elsewhere in the capital.
Across Britain, affordability varies sharply.
Inverclyde was identified as the most affordable area overall, with homes costing just 2.3 times average earnings, while places such as Burnley and Hartlepool also ranked among the cheapest.
By contrast, Kensington and Chelsea was found to be the least affordable area in both London and Britain, with homes costing nearly 14 times local incomes.
Adam French, head of consumer finance at Moneyfacts, said: “Swap rates, which underpin mortgage pricing, have risen sharply following the decision (by the Bank of England on Thursday) to hold the base rate at 3.75 per cent, with markets interpreting commentary from the Bank of England as leaving the door open to rate rises amid ‘Trumpflation’ fears.
“With two and five-year swaps now sitting at their highest level in more than a year, lenders are once again facing higher funding costs, and this will feed through into mortgage pricing.”
He added: “While a quicker resolution to the conflict in the Middle East could ease pressure on rates, the reality is that a more volatile world is a more expensive world.
"Even though the most competitive deals will remain below average, anyone looking to buy or remortgage this year needs to prepare for higher costs than previously expected.”
Mary-Lou Press, president of NAEA (National Association of Estate Agents) Propertymark, said Nationwide’s data “highlights a mixed picture for first-time buyers across the country”.
She added: “It is positive to see affordability improving in many areas, with around 70% of local authorities recording progress over the past year, which should help support market activity.
“However, significant regional disparities remain. While some parts of the country are becoming more accessible to buyers, high house prices in areas such as London and the South East continue to create substantial barriers, particularly when it comes to saving for a deposit.”
James Nightingall, from property search service HomeFinder AI, said: “Prime central London boroughs including Kensington and Chelsea are particularly sought-after.
“Many first-time buyers are priced out and are looking in zones three to six for more affordable homes whilst others decide to continue to rent and save up a larger deposit.”
Here are the most affordable areas for first-time buyers in nations or regions, according to Nationwide, with the average house price-to-earnings ratio:
Scotland, Inverclyde, 2.3
North West, Burnley, 2.8
North, Hartlepool, 2.9
Yorkshire, Kingston upon Hull, 3.0
Wales, Merthyr Tydfil, 3.3
West Midlands, Stoke-on-Trent, 3.4
East Midlands, West Lindsey, 3.7
East Anglia, Great Yarmouth, 4.3
Outer South East, Gosport, 4.7
Outer Metropolitan, Surrey Heath, 4.8
South West, Swindon, 4.8
London, Bromley, 6.2
Here are the least affordable areas for first-time buyers in nations or regions, according to Nationwide, with the average house price-to-earnings ratio:
London, Kensington and Chelsea, 13.9
Outer South East, Oxford, 8.0
East Anglia, Cambridge, 7.3
Outer Metropolitan, Spelthorne, 7.0
South West, South Hams, 6.9
East Midlands, Derbyshire Dales, 5.7
West Midlands, Stratford-on-Avon, 5.6
North West, Trafford, 5.5
Yorkshire, York, 5.4
Wales, Cardiff, 5.3
Scotland, Midlothian, 4.9
North, Westmorland and Furness, 4.1
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