Falling house prices and record low interest rates mean the affordability of house has improved to where it was in 2005.

As a result, the average family earning less than 24,000 Euros per annum has to spend 27pc of before-tax annual income on buying a house, according to the latest figures from the Bank of Spain (BOE).

Families earning more lose out on tax breaks and have to spend 34pc of income paying for their homes, just 33pc that experts recommend as sustainable.

As a result of recent price falls, the average Spanish home now costs 6.5 times average income, compared to 7.6 times in 2007.