Typical mortgage payments accounted for less than a third of homeowners’ disposable income in the fourth quarter of 2017, compared with nearly half in 2007, Halifax said.
It said the significant improvement in affordability had been driven by historically low mortgage rates, despite the first base rate rise in a decade in November.
The 29 per cent figure for mortgage payments was the lowest since the second quarter of 2013.
It is also the lowest percentage seen for any fourth quarter in a decade.
While mortgage payments are at their lowest as a proportion of disposable earnings in Northern Ireland (19 per cent), Scotland and the North East (both 20 per cent), Yorkshire and the Humber and the North West (both 23 per cent), they are highest in London (45 per cent), the South East (40 per cent) and South West (34 per cent).
The findings were based on mortgage payments for a new borrower, including both first-time buyers and home movers.
Average house prices and mortgage rates were used for someone with a 30 per cent deposit.
The finding that mortgage payments take up around 29 per cent of wages is well below the long-term average of 35 per cent, Halifax said.
Andy Bickers, mortgage director at Halifax, said: “In recent months we have seen the number of first-time buyers and home movers purchasing a home with a mortgage bounce back towards 2007 levels.
Halifax used Bank of England and Office for National Statistics (ONS) figures to make its calculations.
HERE ARE THE TOP 10 MOST AFFORDABLE AREAS ACCORDING TO HALIFAX:
1. Copeland, North West, 14.9 per cent
2. Inverclyde, Scotland, 15.7 per cent
3. North Ayrshire, Scotland, 15.9 per cent
4. West Dunbartonshire, Scotland, 16.2 per cent
5. Renfrewshire, Scotland, 16.4 per cent
=6. East Ayrshire, Scotland, 16.6 per cent
=6. Pendle, North West, 16.6 per cent
=8. Burnley, North West, 16.7 per cent
=8. Hyndburn, North West, 16.7 per cent
10. Barrow-in-Furness, North West, 16.9 per cent
HERE ARE THE 10 LEAST AFFORDABLE AREAS ACCORDING TO HALIFAX:
1. Brent, London, 61.1 per cent
2. Haringey, London, 60.5 per cent
3. Harrow, London, 57.7 per cent
4. Elmbridge, South East, 56.3 per cent
5. Hillingdon, London, 56.2 per cent
6. Ealing, London, 55.7 per cent
7. Islington, London, 55.1 per cent
8. Barnet, London, 55.0 per cent
9. Hackney, London, 54.9 per cent
10. Chichester, South East, 54.0 per cent
