United Kingdom homebuyers are experiencing the toughest mortgage affordability pressures in nearly two decades, though the impact varies widely across the country, according to industry data.

UK Finance, the banking trade body, said that in 2025, initial mortgage repayments typically accounted for more than a fifth (21.3 per cent) of a buyer’s gross income nationwide, the highest level since 2008, according to the report published by The Guardian.

The figures do not reflect the more recent economic disruption linked to the Iran war, which has driven up mortgage costs and could leave many borrowers paying hundreds or even thousands of pounds more than they would have before the conflict.

UK Finance also noted that the national average conceals major regional differences in affordability pressures.

According to the report, the “least affordable” areas, measured by mortgage repayments as a share of income, were north Norfolk and the west London borough of Hillingdon, where buyers typically spent more than a quarter of their gross income on repayments—25.7 per cent and 25.1 per cent respectively.

Eight of the 10 least affordable locations were largely concentrated in the London commuter belt.

These included Luton in Bedfordshire (24.9 per cent), Slough in Berkshire (24.8 per cent), Broxbourne in Hertfordshire (24.4 per cent), and Harlow in Essex (24.2 per cent).

At the other end of the spectrum, the report noted that seven of the 10 most affordable local authority areas were in Scotland.

Topping the list were East Ayrshire and Inverclyde, where, in 2025, the average homebuyer typically spent around 17 per cent of gross income on initial mortgage repayments.

The City of London also featured unusually high on the affordability rankings, coming in third.

UK Finance attributed this to the fact that those buying there tend to be among the highest earners, making repayments more manageable relative to income.

Although dominated by financial services firms, the City of London also includes residential areas such as the Barbican estate’s 2,000 flats, and remains one of the most expensive places in the UK to purchase property.

The head of analytics at UK Finance, James Tatch, said the past few years had been difficult for prospective homebuyers, with affordability pressures remaining significant throughout the period.

“But the pain is not felt equally across the country,” he added. “Property prices, wages and demographics vary greatly across and within regions. All of these have an impact on affordability.”

Despite ongoing affordability challenges driven by high property prices, elevated borrowing costs, and the difficulty of saving for deposits, 2025 still saw what the industry described as “robust activity” in mortgage lending for home purchases.

According to UK Finance, the number of mortgages advanced by banks and other lenders for house purchases rose to 723,000 in 2025, a 17 per cent increase compared with 2024.