South-west is now least affordable region in England

Five of the 10 least affordable areas in the country are in the South-west, according to Can Work – Can't Buy by housing economist Professor Steve Wilcox.

London held the top five places in the previous version of the annual report, published in May 2003.

Wilcox attributed the change in the rankings to house prices continuing to rise in the South-west while markets have cooled a little in London and the South-east.

The least affordable authorities are often those with the biggest gap between incomes and house prices, rather than those with the most expensive homes.

Last year, however, Westminster – a London borough containing some of the UK's most expensive property – had the biggest gap between incomes and house prices.

Wilcox unveiled the interim findings of the updated report at the Chartered Institute of Housing conference in Harrogate last Thursday.

Can Work – Can't Buy looks at the affordability of property across the country for 20- to 39-year-olds on average incomes.

It measures the ratio of house prices to incomes.

The report showed that the South-west is now less affordable than the South-east, but did not receive any extra funding in the Communities Plan.

Wilcox said that a funding change was needed.

"When the ODPM looks at the comprehensive spending review, I hope we will see growth for the South-west as well as London and the South-east."