Nine out of 10 towns in the UK are now unaffordable for the typical first-time buyers.

Research from Halifax suggests that despite reductions in mortgage rates in recent years, salaries have failed to keep pace with rapidly escalating property prices.

There were 361,000 first-time buyers in 2004, down from 532,000 in 2002, and the lowest annual total since 1981.

The most affordable town in the UK for first-time buyers is Lochgelly in Scotland, closely followed by Nelson in the North-West, Cowdenbeath in Scotland and Aberdare in Wales, where average prices range from 3.04 to 3.64 times the average income of a first-time buyer.

The least affordable town in the UK for the first-time buyer is Gerrards Cross, where the average property price is 18 times the average first-time buyer’s income.

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However, Halifax chief economist Martin Ellis says: “There is some light at the end of the tunnel. We expect the situation to improve somewhat as earnings growth outstrips house price inflation over the next few years. This will make it easier for first-time buyers.”