The property boom has apparently pushed prices so far as to make it virtually impossible for the average person to get his or her first mortgage. A recent local study by propertyhotspots.net concludes 74% of areas are now deemed overvalued and unaffordable.

However, since 74% of areas are overvalued, does this mean that up to 1 in 4 areas must still be undervalued? For the discerning investor or first time buyer, this is an opportunity to capitalise.

The research undertaken by propertyhotspots.net dissects over 300 areas, providing a more in-depth review than the general national outlook.

Ajay Ahuja, founder of propertyhotspots.net comments, "The fact that there are still numerous areas which are affordable means there is scope for first time buyers wanting to get onto the market"

Top of the league is Easington in County Durham, which sees houses undervalued by an average of 126% compared to the prices they are offered at. Barrow-in-Furness follows in at second at 109% under valuation whilst two other North East towns in Hartlepool and Wansbeck follow Easington into the top ten. North and North East Lincolnshire towns are amongst the top ten, as are a few small towns in Lancashire.

However, whilst the property boom in the UK has seen a flurry of activity over the last couple of years, there is concern that a significant proportion of the public are unable to finance a mortgage due low salaries in comparison to the swelled property prices.

Not surprisingly, nine out of the ten most overvalued areas in the UK are in London with Kensington and Chelsea being overvalued by 87%, according to the report. Camden and the City of Westminster conclude the top three. Elmbridge, in Surrey, being the only top 10 entrant outside of London with an overvaluation of 54%.

The study also provides an intriguing review of the average property costs in comparison to the average salary in the local area, termed the Property Affordability Index. Provided as a ratio format, North East towns come out trumps again with Easington houses valued at an average 1.9 times the annual salary for a resident in the area.

At the other end of the scale, Kensington and Chelsea houses are valued at an average 31.2 times the average salary for a resident in the area. Camden, Wandsworth, Hammersmith and Fulham and other London boroughs exhibit double figures for this same ratio.

Full access to the top ten overvalued and undervalued areas in addition to the Property Affordability Index for over 300 towns and cities are available through a subscription magazine at propertyhotspots.net.