House buyers in London and the south of England are benefitting most from improved affordability compared to last year.

In London, where average asking prices are now 1.1% lower than at this time last year, someone purchasing a home at the average asking price could save £181 on a monthly mortgage.

In the South East it’s £120 per month, and in the South West it’s £106 per month. This is according to the latest data from Rightmove.

By contrast buyers in Scotland are only paying an average of £23 less on a monthly mortgage with prices having risen by 2.6%.

Across the UK, the average monthly mortgage payment is now £84 lower than a year ago: £1,506 per month, versus £1,590 per month last year, an £84 drop. And the average asking price for a home is £370,257.

The average two-year fixed mortgage rate has lowered from 4.99% at this time last year, to 4.53% now

Rightmove’s analysis is based on buyers purchasing a home at the average asking price, with a two-year fixed mortgage rate, and spreading the cost of the mortgage over 30 years.

Commenting on the latest figures Rightmove property expert Colleen Babcock 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.”

She added: “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.”