Homes in the UK are becoming increasingly affordable, a new study by Halifax has indicated.

According to the research, mortgage payments for a new borrower during the second six months of 2011 stood at their lowest level as a proportion of disposable earnings for 14 years. In addition, it was shown that typical home loan costs for such individuals, when considered alongside the long-term average loan-to-value ratio, amounted to 27 per cent of disposable earnings for the final quarter of 2011.

This was calculated for both home movers and first-time buyers and stood at a significantly lower level than the average of 37 per cent reported over the last 27 years.

The investigation also revealed home loan payments have almost halved as a proportion of salary since the third quarter of 2007, with lower mortgage rates and reduced house prices cited as the main reasons for affordability seeing such marked improvement.

Martin Ellis, housing economist at Halifax - which is a division of the Bank of Scotland and is regulated by the Financial Services Authority - noted: "The falls in house prices and cuts in mortgage rates in the last few years have resulted in a significant improvement in housing affordability for those able to raise the necessary deposit to enter the market."

The industry figure explained this trend provided much-needed support for housing demand in 2011, adding affordability levels are likely to remain favourable for the foreseeable future thanks to the Bank of England Bank Rate staying low.