The overall number of mortgages in negative equity fell from 826,800 in the first quarter 2011 to 463,415 in the last quarter of 2013.
Northern Ireland is the worst affected with 41 per cent of mortgages advanced since 2005 still in negative equity.
In London, meanwhile, just 1 per cent of the capital’s homeowners now owe more on their mortgage than their property is worth.
The figures also reveal 16 per cent of borrowers in the North of England are still stuck in negative equity, 13 per cent in Scotland and 11 per cent in both Yorkshire & the Humber and the West Midlands.
Damian Riley, director of business intelligence at HML, said: “It appears the North/South divide is alive and well where negative equity is concerned.”
Kim Barrett, IFA at Hertfordshire-based Financial Solutions, said it was a reflection of the way the wealth in the country was shifting.
And he added: “The only consolation is if you can afford your mortgage payments, then negative equity is a bit of an illusion. But you’re stuffed if you lose your job and need to sell.
“It is a big fat warning to try to repay your debts while interest rates are low.”