London’s high cost housing market has also been a factor, with rents and mortgage repayments generally being more expensive than in the rest of the UK, the Foundation added.
By contrast Scotland's pay growth has outperformed the rest of the nation and overturned the English 'pay premium' - the longstanding wage gap between England and Scotland - for the first time since records began.
Typical pay in Scotland is now – at £11.92 an hour – which is marginally higher than in England (£11.84).
"The years since the crash have been tough for many families across London, and we are yet to see the progress made by other nations and regions across the UK such as Scotland," said Conor D’Arcy, Policy Analyst at the Resolution Foundation.
"Along with a smaller pay squeeze, and in contrast to the much higher housing costs faced by those in the capital, Scotland’s generally more affordable housing market has been one of the drivers, illustrating how crucial accommodation costs are for living standards."
