By Charlotte Beugge

Buying a home in the UK is at its cheapest for 14 years, according to Halifax, which tracks what percentage of disposable earnings is needed to cover a typical mortgage.

Typical mortgage payments for a new borrower - both first-time buyers and home movers – accounted for 27% of disposable earnings in the fourth quarter of 2011: far below the average of 37% recorded over the past 27 years.

The peak was in 2007 when a typical homebuyer needed to put aside 48% of their income to pay for their mortgage. Lower house prices and reduced mortgage rates have been the main drivers behind the significant improvement in affordability.

Average mortgage payments as a proportion of average disposable earnings for a new borrower have fallen by two-thirds in Northern Ireland and have nearly halved in both Yorkshire & the Humber and Scotland.

Nearly all local authority districts - 95% - have seen a fall in mortgage payments as a proportion of average earnings of at least 25%. 18 areas have recorded an improvement of 50% or more.

Seven of the ten most affordable local authority districts are in Scotland. East Ayrshire is the most affordable local authority district in the UK, with typical mortgage payments accounting for just 15.7% of average local earnings.

Kensington and Chelsea is the least affordable local authority district in the country, with average mortgage payments on a new loan accounting for 78% of average local earnings.