First-time buyers are being increasingly pushed out of the housing market because they cannot keep up with price rises.

The increase in house prices over the last two years has been more than average take-home pay in one fifth of local authority areas.

The claim, from the Halifax, comes as latest figures show that mortgage lending to first-time buyers plunged an astonishing 27% in January compared with December.

In January, there were 19,000 loans to first-time buyers, down 14% on January 2014, according to the Council of Mortgage Lenders.

Lending to first-time buyers was at the lowest level for 21 months.

Lending to home movers was also heavily down – by 24% compared with December, and 17% year-on-year.

The only part of the mortgage market to show annual growth was buy-to-let. There were 18,200 buy-to-let mortgages in January, up 6% on a monthly basis and 12% on an annual basis.

According to Halifax, in 73 out of 384 UK local authority districts, homes have “earned” more than their owners.

In these areas, house prices increased by more than the average employee’s take-home pay over the last two years.

Most, but not all, of the areas with the highest price rises were in London, the south-east and east, with eight London boroughs showing most house price growth.

In Hammersmith and Fulham, average house prices increased by £199,930 over the last two years.

The increase is £143,232 more than average earnings in the area over the same period, of £56,698.

Outside London, the south-east and east, the Cotswolds experienced the highest rate of house price growth, with house price gains exceeding average earnings by £31,222.

But even far less dramatic house price rises have outpaced earnings: Melton and Harborough in Leicestershire saw average prices rise by more than earnings in 2013 and 2014, with price gains exceeding average net earnings by £9,358 and £6,938 respectively.

Last year, house prices increased by 9%, the biggest annual rise since 2007, the Halifax said.

Martin Ellis, housing economist at Halifax, said: “The housing market recovery over the past couple of years has resulted in some substantial prices rises in some areas of the country, particularly in London and the south-east.

“This has resulted in homes increasing in value by more than total take-home earnings for the average home owner in some areas of the country.

“This is good news for some home owners.

“At the same time, it is challenging for those looking to buy their first home in such areas, with prices being pushed out of range for many young people.”