The Halifax building society has revealed its latest research findings, showing that it is presently cheaper for the average tenant to buy a home than to rent.
Even though house prices are still rising, a saving of around £1,300 per year could be made if a typical three-bedroom home could be bought instead of rented.
Maintenance costs and insurance were factored into the figures released by the Halifax, which found that the low mortgage rates currently available mean that people buying their first home tend to pay around £677 every month for a property with three bedrooms, whereas renting it would probably cost them £787.
At the low point of the financial crisis, in 2009, the monthly cost for renting was about £37 less than it was for buying. The figures have been reversed since then and, as of last year, the gap between buying and renting has grown. In 2013 it was cheaper to buy a house, with a saving of around £93 per month over renting. Now, the current monthly saving stands at £110.
However, the figures are not consistent across the whole of the country, with renting remaining cheaper than buying in East Anglia and the East Midlands. The increasing cost of renting has left many people unable to save up for a deposit on a home. For those who are in a position to apply for a mortgage, it would be wise to obtain professional help beforehand, and advisors with CeMAP training will be qualified to give the right guidance.