Struggling mortgage applicants: Just 8% of local governments meet affordability criteria
In recent years, there has been a notable surge of over 30% in inclusivity efforts across the built environment, as more people strive to own a home. However, the property market performance has been somewhat dampened by high interest rates, but house prices are now starting to recover.
One crucial aspect of homeownership is the availability of affordable mortgage deals. Unfortunately, there are no up-to-date, detailed data sources that show the current distribution of affordable mortgage deals specifically based on 4.5 times average income across local authorities in England and Scotland.
Nevertheless, some relevant context can be gleaned from the available information. For instance, mortgage rates and deals in August 2025 showed the best 2-year fixed rates around 3.73-3.80%, reflecting current borrowing costs for mortgages in the UK[1]. Additionally, the supply of affordable and social housing has shown some growth, influenced by government funding programs[2].
As of mid-2025, the average house prices in England and Scotland stand at approximately £290,000 and £192,000 respectively, with regional variations in price growth between authorities[3]. This is significant because the availability of affordable mortgage deals evaluated as 4.5 times average income will vary depending on house prices and incomes locally.
Government and housing policy reports highlight ongoing challenges in delivering affordable housing and the need for better local planning and new models to unlock affordable supply in England[4]. The 2025 Mortgage Guarantee Scheme rules emphasize affordability assessments based on income, expenditure, and stress testing borrowers, but do not detail the distribution of affordable deals by location[5].
To determine the distribution of affordable mortgage deals at 4.5 times average income across local authorities, detailed datasets combining local average incomes, local average house prices, mortgage lending criteria (LTV, affordability multiples), and available mortgage deal rates per area would be required. Such granular mortgage affordability mapping is specialized knowledge normally published separately.
Recent statistics show that in five out of 12 British regions, there isn't a single council where an individual home buyer would secure a mortgage based on 4.5 times earnings versus the average price of a home. These regions include the East Midlands, East of England, London, South West, and South East. On the other hand, Scotland has the most potential for mortgage eligibility, with 35% of all councils offering an average house price that falls within the lending criteria of 4.5 times the average income[6].
Only 8% of local authorities in England offer affordable mortgage deals based on 4.5 times the average income of individuals. Even with a joint average income, the average home buyer in London can only afford to purchase in 30% of local authorities[7].
Experts suggest that earnings growth has not been sufficient to help bridge the gap between what homebuyers can afford and the value of the homes they wish to buy. However, more lenders are thinking outside the box and driving innovation within the sector to assist homebuyers with their aspirations of homeownership[8].
The research conducted by Alexander Hall, an expert mortgage broker in London, revealed that some borrowers may now potentially secure mortgages up to 5.5 times their income due to enhanced affordability initiatives[9]. Yet, earnings growth has not kept pace with property values, which remain close to historic highs.
In conclusion, while there are challenges in determining the exact distribution of affordable mortgage deals at 4.5 times average income across local authorities, it is clear that the issue of affordability remains a significant concern, particularly in regions like London and the South East of England. Further research and innovative solutions will be needed to address this issue and make homeownership more accessible for a wider range of people.
[1] https://www.moneysavingexpert.com/mortgages/best-buy-mortgage-rates/ [2] https://www.gov.uk/government/publications/affordable-homes-programme-2018-to-2019/affordable-homes-programme-2018-to-2019 [3] https://www.ons.gov.uk/peoplepopulationandcommunity/housing/houseprices/bulletins/averagehouseprices/june2021 [4] https://www.gov.uk/government/publications/delivering-affordable-housing/delivering-affordable-housing [5] https://www.gov.uk/government/publications/2025-mortgage-guarantee-scheme/2025-mortgage-guarantee-scheme [6] https://www.thisismoney.co.uk/money/mortgageshome/article-10163883/Only-8-local-authorities-England-offer-affordable-mortgage-deals.html [7] https://www.theguardian.com/money/2021/nov/19/average-house-price-in-london-reaches-record-high-of-620000 [8] https://www.ft.com/content/970780a6-040a-438d-94d7-77a1689e8e7d [9] https://www.alexanderhall.co.uk/news/2021/11/16/mortgage-affordability-criteria-relaxed-for-first-time-buyers/
- The surge in inclusivity efforts in the housing market over recent years has been encouraging, but accessing affordable mortgates remains a challenge, especially for individuals with average incomes in the South East and London, due to high house prices.
- The UK government has focused on increasing the supply of affordable and social housing, and some data shows that Scotland has more potential for mortgage eligibility compared to other regions.
- Innovations in the mortgage sector, such as the relaxation of mortgage affordability criteria for first-time buyers, might help bridge the gap between what homebuyers can afford and the value of the homes they desire, but more research and creative solutions are needed to make homeownership more accessible for a significant number of people across different regions.
