Recent research from the Halifax found that there are 163 towns across Britain where a first time buyer needs to earn an income in excess of local average earnings, which theoretically excludes them from buying in around a third of UK towns.
Ray Boulger, senior technical manager at Charcol, said: "Clearly there is legitimate cause for concern among would-be homeowners, as the recent Halifax research demonstrated. While there is no doubt that house price increases have hit low-earners across the board, and mid-income earners in certain South-East regions, we have seen a silver lining emerging in the form of a range of innovative mortgages designed to cater for the needs of these first time buyers.
"Recently launched products, such as the Newcastle guarantor mortgage and the Rent-a-Room scheme, have created new footholds in the property ladder for many first time buyers. By shopping around and taking advantage of these new products (many of which are not readily available to customers going direct to lenders), first time buyers can maximise their borrowing power without having to overstretch themselves.
"Borrowers should remember that statistics don't always give the full picture. For example, all of the ten least affordable towns listed in the Halifax research are within commutable distance to the City of London. Matching the required income for buying a property in these towns with the average local income (which is based on employees working in the area and does not take into account the likely higher incomes of commuters) may not be telling the full story of buyers' experiences on the ground."
