According to a report by ratings agency Fitch entitled Global Market Outlook for Housing and Mortgage Lending, the UK as a country has seen a moderate improvement in affordability measured by the debt-to-income ratio and conditions should remain favourable in the coming year.

It stated: “Mortgage affordability has improved markedly since 2007 despite the continued downward forces on real wages.

“This is the result of both a failure of house prices, on average, to recover their pre-crisis levels, and the record low interest rate environment.

“However, while affordability in general terms is good, access to credit remains relatively limited at higher LTVs and imperfect credit history.”

Affordability in terms of house price to GDP per capita ratio, though, remained stretched and the report estimated the UK required more than 200,000 additional houses annually over the next two decades.

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Gross new mortgage lending would remain stable in 2013, the report suggested.