Across the UK homebuyers spend on average just over a fifth – 21.2% – of their gross income on mortgage payments, according to the analysis by UK Finance.
This is the highest level since 2008 – but in some areas of the UK the affordability is even tighter.
The analysis found in North Norfolk in East Anglia homeowners are typically paying 25.7% of their income on their mortgage, making this the place in the UK with the highest affordability requirements.
Close behind is the London Borough of Hillingdon where mortgage borrowers spend on average 25.1% of their income on repayments.
The remaining eight locations in the top 10 least affordable places were in the London commuter belt including Luton (24.9%), Slough (24.8%) and Spelthorne (24.8%) local authorities.
But when it came to the most affordable, Scotland topped the list with places such as East Ayrshire and Inverclyde coming in well below average for the UK for repayments as a percentage of income.
Indeed, in both areas homeowners typically pay 17% of their income on the mortgage repayments. The City of London comes in third place as the most affordable, but this is due to the fact it is predominantly a business district with limited residential stock.
Its high-earning buyer profile means it ranks among the most affordable areas on this measure.
The data also showed the highest buy-to-let rental yields were in Scotland, where UK Finance found, gross yields of over nine per cent.
At the other end of the scale, the lowest returns were scattered across England, from South Hams in Devon (5%), to Cambridge in East Anglia (5.3%), to the Derbyshire Dales (5.3%) and Rutland (5.4%).
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. 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.”
Joe Pepper, UK CEO of PEXA, said: “This report highlights how much the homebuying experience varies across the UK, underlining the importance of understanding local markets to support better decision-making.
“As the industry continues to digitise, there is a real opportunity to create a more efficient, transparent and responsive housing market for borrowers across the country.”