UK housing affordability hits 7-year high

According to research from British property web site zoopla.co.uk, the average British income earner can now afford 58 percent of all homes on the market, a significant rise from 2007's record low level of 34 percent.

The best affordability ratio in the last 10 years was in 2002, when the average British income earner could afford 66 percent of all homes on the market.

Zoopla calculated the affordability rate based on data from regional markets. It used the median income, average house price, and prevailing mortgage rates in each market to calculate the affordability rate. A house is considered "affordable" if one-third of the median income covers the mortgage payment.

In 2002, the maximum price for an "affordable" house under these guidelines was £118,934 ($177,883 at current exchange rates). Today, increased incomes and lower interest rates have raised this price to £188,423 ($281,813).