Scotland has been earmarked as the best place to own an affordable home in the UK, a new report reveals.

A review of housing affordability by the Bank of Scotland found that the five best areas in the UK for affordable housing are all located in Scotland; with East Ayrshire, North Ayrshire, North Lanarkshire, West Dunbartonshire and South Lanarkshire coming up trumps in the survey.

Typical mortgage payments in East Ayrshire amount to a miniscule 17.7 per cent of average local earnings, vaulting the area to the very top of the list.

The study shows that Scotland is a very attractive location for social housing - a prospect that may attract both social housing investors and those looking for social housing jobs.

On average, typical mortgage payments for a new borrower amount to 22 per cent of average disposable income - a huge markdown from the figures in 2007, which found around 38 per cent of disposable income went straight on mortgage payments. Overall, the proportion of disposable earnings to mortgage payments is at its "most favourable" for 12 years, reports myintroducer.com.

Martin Ellis, housing economist at Bank of Scotland, commented on the findings: "Lower house price and reduced mortgage rates have resulted in a substantial improvement in housing affordability since the peak of the housing marketing in 2007.

"With the prospect of continuing low rates for some time yet, affordability is likely to remain favourable. These affordability gains, together with a slowly improving economy, should help to support demand in the face of pressures from weak earnings growth, relatively high inflation and higher taxes."