Recent research from the Halifax reveals that it is now cheaper to buy a property than rent. The report indicates that owning your own home will be
£672 cheaper than renting a similar property.
The research is based on a first time buyer purchasing a house in the UK that has three bedrooms. The calculations include the cost of the mortgage repayments, maintenance and repair, insurance and other expenses. The average monthly expenditure was calculated at £666 earlier this year, while the costs for renting a similar property would be £722 a month, saving £672 a year.
However, as house prices continue to rise, the difference in cost is narrowing. Halifax also found that the average price paid for a home by a first time buyer has increased by eight per cent, although rents have only risen by £8 per annum. In June 2009, buying a home would have cost £1,154 more than renting a similar property. The costs of buying have fallen mainly due to the low interest rates, despite the fact that property prices have increased by 25 per cent.
Data from the Council of Mortgage Lenders shows that the number of first time buyers has also increased, although the figures for 2014 were slightly higher, mainly due to the lack of new housing. Buying a home is still a popular option despite the fears of an interest rate increase, although it is advisable to consult a mortgage adviser who has taken the CeMAP training.