Well think again. According to research from the Halifax Building Society, buying a home is £900 a year cheaper than renting. The research also found that first-time buyers can save £27,000 over the term of their mortgage. That’s almost as much as the average deposit (currently £31,751).
The latest Halifax Buying versus Renting Review found that the average cost of buying a three-bed home in the UK, including mortgage payments, was £679 a month in December 2017, compared to the average monthly rent of £754 for the same property type.
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. In the region where Larkfleet is building, the average monthly saving is £94.
Nationally, the average monthly cost of buying has dropped 22 per cent (£192) since 2008, while rental payments have jumped by the same amount (22 per cent or £138).
Russell Galley, Halifax managing director, told us: “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. Meanwhile, the cost of rent, household
maintenance and average deposits have remained broadly flat.
“Despite having to put down a sizeable deposit up front, homeowners are overall better off than renters in all parts of the UK. But those who are unable to get onto the property ladder because they can’t raise enough cash are paying more by renting.
“The good news is that record numbers of first-time buyers are still taking their first step on to the ladder and helping to bridge this gap thanks to a continued low-rate environment and government schemes including Help to Buy.”
Financially it’s a no-brainer. So, first time buyer but thinking of renting? Take a look at our developments to find the house of your dreams today.
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