Leeds Building Society’s analysis shows that, under current lending criteria, up to 65% more homes in England and Wales have become affordable to first-time buyers.

The lender used retrospective Land Registry data for the year to July to estimate the impact on affordability.

It found that the criteria changes would have put 143,017 within reach of first-time buyers, compared to 86,915 previously.

The changes by the Prudential Regulation Authority in July, gave lenders greater flexibility on the proportion of higher loan-to-income (LTI) mortgages they can offer.

Leeds says that its own adjustments mean that buyers with an annual income of £30,000 can now access mortgages of up to 95% loan-to-value and borrow up to £165,000, to purchase a home worth up to £173,000.

Prior to the changes, the same borrower would have only been able to afford a home worth up to £141,000.

Leeds has also reduced its stress rate.

Other initiatives it has launched to support first-time buyers, include its Income Plus range, which offers up to 5.5 times LTI, and its Reach range for borrowers with lower credit scores.

Leeds Building Society director of mortgage distribution Martese Carton says: “Affordability remains a challenge for many would-be homeowners, with house prices still outpacing wage growth in several regions.

“But brokers should be reassured to know that a £30,000 income is enough to help their clients achieve their homeownership dreams.”

Mortgage Advice Bureau strategic lender relationship director Rachel Geddes adds: “It’s an undeniable fact that affordability remains the single biggest hurdle for aspiring homeowners.

“Our research shows 65% of renters aspire to buy, yet a discouraging 27% believe homeownership is completely out of reach.

“The truth is, many aspiring buyers simply don’t realise they’re in a position to get on the property ladder.

“Our job as brokers is to change this narrative and raise awareness of the innovative mortgage products available.”