Low interest rates offered by banks have resulted in improvements in housing affordability, claims the latest Home Affordability Report from Massey University.

Compiler of the report Prof. Bob Hargreaves, however, has expressed concerns that the trend might not continue into 2010.

The university on Thursday revealed that its national affordability index improved by 2.6 per cent to a reading of 25.7 in the quarter ending November 30, from 26.5 in the August quarter.

Northland registered the largest reduction in affordability, with a 15 per cent change, and for the first time was one of the three least affordable regions with an index at 104.8 per cent of the national average.

However, Central Otago Lakes reported the least affordability of 135.9 per cent, followed by Auckland at 124.9 per cent, while Southland continued to be the most affordable region registering an index of 58.8 per cent of the national average.

The November quarter witnessed a 0.3% rise in the average weekly wage. Also, the national median reported a 2.3 per cent increase in house price and a 4.5 per cent reduction in the average weighted mortgage interest rate.