The ability to buy a home has fallen by 3% over the past 12 months, and an incredible 73% in London.
This is largely due to house prices rising faster than incomes, according to Hamptons International latest Ability to Buy index, published today.
But ability to buy has improved by 2% since the last general election, and by 11% for first-time buyers.
This is largely due to falling mortgage rates, which stood at 2.9% at the end of 2014, compared to 6.4% at the 2007 market peak.
But it is a different story in London, where the ability to buy is now 77% worse than five years ago.
Fionnuala Earley, residential research director at Hamptons International, said: "Despite some of the lowest mortgage rates on record, falling food and oil prices and some increase in wages, ability to buy is worse than this time last year.
"This is largely a result of house price growth outperforming incomes.
"For working families with children the growing costs of childcare eats into the amount of money left at the end of the month to service a mortgage."
First-time buyers are strugglling to raise a large enough deposit as house prices continue to rise, Earley said.
"While it is still a challenge, with a strengthening economy, recovering real wage growth, low interest rates and huge competition between mortgage lenders for business, there are brighter times ahead."
The South West, Wales, Yorkshire & Humberside and the North West have all seen an improvement in ability to buy since last year.
The South West saw the biggest improvement at 9%.
London saw the biggest deterioration in ability to buy over the year at -73%.
First time buyers' ability to buy is 2% worse than last year, but 11% better than at the last election.
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