Homes in Scotland are the most affordable in the UK, it has emerged.

The Halifax house price index for June 2007 shows that Scotland is one of two remaining regions of the UK where the average cost of a home is less than £150,000.

Scotland now tops the affordability chart with an average house price of £140,262, ahead of Yorkshire and the Humber with an average of £149,051.

Despite this, growth in the region has been strong over the past year, with an annual price increase of 15.9 per cent, compared with a national figure of 10.7 per cent.

This places Scotland third in terms of popularity growth behind London and Northern Ireland, which has seen an increase in prices of 46.7 per cent over the past 12 months.

Chief UK and European economist at Global Insight Howard Archer warns that homes in England could face uncertainty in the coming months as the delayed introduction of home information packs takes full effect.