New build affordability fell for the third year in a row, analysis from Paragon Bank shows.

It says that in 2020, a new build property in England and Wales was 9.5 times the average salary. This compares to 9.55 times the average salary in 2019 and 9.63 in 2018.

Paragon adds that new build housing affordability improved in just over half – 167 out of 330 – of local authority areas.

Last year, the North West of England, with an affordability ratio of 7.92 – or an average new house price of £229,950 against an average salary of £29,700 – was the easiest place to buy.

London, with an average new house price of £560,000 with an average salary of £38,592, making for an affordability ratio of 14.51, was the worst.

Paragon development finance managing director Robert Orr comments: “Housing affordability remains an issue across the UK and, whilst it’s positive to see affordability for new build homes improve across England and Wales, the sector needs to look at innovative ways to help people purchase new build homes.

“The stamp duty holiday, Help to Buy and the government’s 95 per cent mortgage guarantee scheme are certainly a step in the right direction, but the supply side issue needs to be addressed to get more new homes built, particularly by SME developers.

He added: “Government statistics show there were nearly 150,000 homes completed in England in 20202. Whilst the year was obviously impacted by coronavirus and below historical average, there is a significant shortfall of new homes needed.”