A report by Halifax showed in 73 of the UK’s local authorities house prices grew by more than their owners’ typical salary.

The vast majority of these areas – 68 of the 73 – were located in southern England.

Hammersmith and Fulham in London had the most pronounced gap with property values increasing by £199,930 compared to typical take-home earnings of £143,232.

Eight of the top 10 areas were in the capital city.

Outside of London and the South East the biggest gap was in the Cotswolds. In this area house price gains outstripped earnings by £31,222.

In the Leicestershire towns of Melton and Harborough average house prices increased by more than earnings to the tune of £9,358 and £6,938 respectively.

Looking at the data from the last five years, the London borough of Islington saw the property prices.

Martin Ellis, housing economist at Halifax, said: “The housing market recovery over the past couple of years has resulted in some substantial prices rises in some areas of the country, particularly in London and the South East.

“This has resulted in homes increasing in value by more than total take-home earnings for the average homeowner in some areas of the country.

“This is good news for some homeowners. At the same time, it is challenging news for those looking to buy their first home in such areas, with prices being pushed out of range for many young people.”