The average home sold in England cost the equivalent of 8.7 times the average annual disposable household income, according to the Office for National Statistics.

The average house price was £275,000 and £31,800 for median income.

This is the worst affordablity ratio on record and double the 4.4 times income recorded in 1999.

Regionally, an average-priced home in the North East cost the equivalent of almost 12 years of income for a low-income household compared with 40 years in London.

In Wales the ratio was six times income, and in Scotland it was 5.5 times income, both below their peak levels.

James Andrews, personal finance expert at Money.co.uk, said: “House price affordability looks set to remain a political headache. While equity-rich homeowners have been able to move up the ladder, many first-time buyers still face being shut out of the market entirely.

“The crisis continued to worsen last year amid rocketing price growth fuelled in part by Rishi Sunak’s stamp duty holiday.

“Young couples now have to borrow bigger sums for longer if they are to have any chance of getting a foot on the ladder.

“Meanwhile, governments looking to boost the supply of new homes continue to face staunch opposition from those determined to protect the status quo in their communities.”

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, added: “The dream of owning your own home is rapidly disappearing with the average home sold in England costing the equivalent of 8.7 times annual disposable income. The picture is also challenging in Wales and Scotland though they have at least not breached the limits seen in 2007-08.

“These figures were taken up until March 2021, but the market has continued to race away since then with wages nowhere near keeping up. There may be early signs the housing market is starting to cool but the reality is it is becoming beyond many people’s reach.”