House prices in more than half of neighbourhoods in England and Wales are still lower in real terms than a decade ago, BBC analysis has revealed.
In 58% of wards, residential properties are selling for less now, after accounting for inflation, than they were in 2007.
The findings, drawn from official data, expose a stark regional divide in price movement since the financial crisis.
Rising house prices have been confined to the South East and East of England.
Average house prices in Wales, Yorkshire and the Humber, the North East and the North West have declined by more than 10% since 2007, when values are adjusted for inflation.
Meanwhile the latest official figures indicated that house prices across the UK rose by 5% in the year to August, taking the average price of a property to £226,000.
The smallest increase was in London where prices rose by 2.6%, according to the Office of National Statistics.
Housing market analyst Neal Hudson said the income squeeze in many parts of the country had constrained house price growth.
“Some people are trapped in their current homes as they have seen no increase in their income and cannot afford to borrow more,” he said.
“Potential first-time buyers in the private rented sector do not have a sufficient or stable income to buy their first home. The idea of committing to a 25 to 30-year mortgage when they are not sure what they are going to earn in the next year is difficult.”
Prices have risen significantly in some parts of the East of England and the South East. In Iver village and Richings Park ward in South Buckinghamshire, the average price so far this year is £700,000, up from £275,000 in 2007.
The least expensive ward in the country is North Ormesby in Middlesborough. In 2017 the average house price there was £36,000.