The typical home in Britain now costs six times the annual salary, regardless of any house price inflation, Nationwide revealed.

Last time the ratio hit a similar level was over eight years ago, in March 2008.

Whilst house prices have risen about 20% over the last three years, wages have only climbed up by 6%, the Nationwide report states.

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On average, house prices in the UK fell from £206,015 to £205,904 between September and October. Nationwide, however, think this may still be an adjustment to the rush to buy prior to the stamp duty increase in April.

Despite the fact that buying a house is quite expensive relative to income, low interest rates have made them more affordable.

“The steady decline in borrowing costs over the same period has helped to lessen the impact on affordability for homebuyers,” said Robert Gardner, Nationwide’s chief economist.

“Indeed, the typical mortgage payment expressed as a share of average take-home pay is little changed over the period, and is still in line with the long-run average.”

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Mr Gardner also pointed out price differences across the country, adding: “It is important to note that there is significant variation across the regions in terms of affordability.

“The cost of servicing the typical mortgage as a share of take-home pay is now above its 2007 peak in London and above its long-run average in the outer metropolitan and outer south-east regions.

By contrast, housing appears far more affordable in northern England, Wales and Scotland.”