Hamptons International has published the findings of its quarterly Ability to Buy index, which showed that the ability to buy a home improved for all areas of the country in the first quarter of 2015 (compared to Q4 2014). For many parts of England and Wales, affordability is now better than in 1997, when the index first began.

The ability to buy improved in the first quarter of 2015, compared to the last quarter of 2014 for all areas of the country thanks to lower inflation, coupled with higher earnings and lower mortgage rates. This allowed households in most parts of the country to have more money with which to finance buying a home.

The average Ability to Buy Index for the UK was broadly stable increasing from 135.4 in Q1 2014 to 135.5 in Q1 2015. In The North East, the Ability to Buy Index increased from 136.1 to 139.4 but in London it fell from 107 to 98, during the same period.

Over the longer term, the North East and Wales saw the biggest recovery (up 10%) since the index began in 1997. In the South East and East, the ability to buy is about 2% below these levels but in London, it is 37% below.