Prospective homeowners already concerned about the cost of home insurance, utility bills and council tax were dealt another blow this morning.

An affordability index released by the Royal Institute of Chartered Surveyors (Rics) revealed that the housing market is now 351 per cent less accessible than it was 12 years ago.

In 1996, a couple on low quartile earnings would have had to save 23 per cent of their combined take-home pay in order to cover the costs of buying a property.

But with house prices having surged during that period and mortgage lenders now requiring larger deposits, that figure has risen to 104 per cent.

"At the start of 2008, first-time buyers are finding it even harder to get a foothold on the housing ladder and the signs are that conditions are unlikely to get better in the short term," said Rics senior economist David Stubbs.

"Mortgage lenders are demanding ever higher deposits as the credit crunch continues to take effect."

While property prices could fall in some areas this year and interest rates are expected to go down, lenders have been reluctant to pass on savings and are continuing to limit their exposure by tightening their credit conditions.

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