House prices in the capital are now 14.5 times the earnings of an average Londoner, according to Hometrack, hitting the highest level on record.

This is up from last year's high of 14 times average income, despite house price growth having slumped in London over the last 12 months. This year's level is 42pc higher than the long-term average over the last 15 years.

The measure gives a good indication of where the most acute affordability problems can be found. While house prices in the capital are around 60pc higher than 2007, this ratio has been boosted by mortgage rates falling over the period, increasing the buying power of households, as well as real wages across the UK declining. The average house price is now £496,000, while earnings are £34,200 a year.

London was followed by Cambridge, where the average property is 14.3 times earnings, Oxford (12.6) and Bournemouth (10.1). In most cities outside the South East, this ratio has stayed largely unchanged in the last 15 years, and in Glasgow, Liverpool and Newcastle it is lower than the long-term average.