Analysis from Rightmove found that buyers in the South benefited most from stable house prices and lower mortgage rates.
The average monthly mortgage payment stood at £1,506, down £84 compared to last year’s £1,590.
This was based on an average asking price of £370,257, with a two-year fixed mortgage over 30 years.
However, regional price trends meant buyers in London and the South saw the biggest improvements in affordability.
In London, average asking prices fell 1.1% year-on-year, giving buyers a monthly saving of £181 on mortgage payments.
Buyers in the South East saved £120 a month, while those in the South West saved £106.
In contrast, average asking prices in Scotland were up 2.3% compared to last year, resulting in just a £23 monthly saving.
In the North West, buyers saved £24, and in Yorkshire & The Humber, the monthly saving was £36.
Colleen Babcock, property expert at Rightmove, said: “Competition amongst sellers to find a buyer is more heated in London and the south of England, while higher stamp duty rates have hit these regions harder, both contributing to lower asking prices compared to last year.
“The result for buyers is improved affordability when combined with lower mortgage rates, and the higher rate of agreed sales compared to last year suggests many are taking advantage.
“However, it’s still much more expensive to purchase a home in London and the south of England compared to other areas of Great Britain, so affordability is still stretched despite the increase in purchasing power.”
Matt Smith, mortgage expert at Rightmove, said: “We’re widely expecting a hold in the Bank Rate today.
“It will be particularly interesting to see how the Bank votes and its wider commentary around today’s decision to get a sense of how the next couple of months could play out.
“Although mortgage rates have trickled up in recent weeks as mortgage financing has become more expensive, we’re still seeing appetite from lenders to do business in what is typically a busy period for them.”
Mary-Lou Press, president of NAEA Propertymark, said: “Average house prices have risen by over £40,000 in only five years, and in London specifically by around £90,000 alone.
“Therefore, a cooling, especially in areas across the south, will be welcomed by many and is due, in part, to ceiling prices being met because of the stretching of affordability for many people.
“A slow tapering in interest rates has allowed lenders to introduce more competitive mortgage products and has decreased the monthly cost for those with variable or tracker mortgages, allowing them to refinance to lower rates, and making it easier for homeowners to afford larger or more expensive properties by making monthly payments cheaper.”
