A latest research by Halifax shows that buying a home is cheaper than renting it in the UK. With rents growing consistently since the last five years, buying a home is £900 cheaper a year than renting, according to the latest Halifax Buying vs. Renting Review.
The average cost, including mortgage payments of buying a three-bed home, in the UK was £679 a month in December 2017, compared to the average monthly rent of £754 for the same type of property.
The gap between the cost of buying and renting is now at its highest in four years, up 44 per cent from last year’s £623 saving to £900 a year. Buying is consistently more financially attractive than renting across the UK, with the greatest annual saving in London (£2191), and the smallest saving in Yorkshire & the Humber still standing at almost £600 a year.
In fact, first-time buyers are saving an average of £27,000 buying a property over those renting – almost as much as the average deposit (£31,751).
The demand for homes from first-time buyers continues to increase in the UK, especially London. If you are interested in buying a home for own use or to let it out, Strawberry Star has ideal schemes, such as Greenview Court and Bronze in London. Call our London office for details.
Russell Galley, Managing Director, Halifax, said: “The gap between buying and renting has widened significantly, primarily driven by a reduction in mortgage rates and a more competitive market pushing down monthly payments."