Cost of buying £120 less than renting, new report says
The cost of buying properties for sale in the UK is now a full £120 less than renting, according to a new report.
And the prices of residential purchases remain far lower than they were before the fall of the sector in 2008, the Halifax findings show.
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The average cost of a mortgage for a three-bedroom house in December 2012 was £621 per month.
Meanwhile, those renting the same property would be facing a charge of £741 on average, meaning that those who are getting a foot on the ladder are paying a full 16 per cent less.
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The cost of buying a house has fallen by a full 38 per cent since 2008, largely thanks to the fact that the market ran into some difficulties during the global recession, with the cost of property falling considerably.
In the past year, the cost of renting rose by four per cent compared to an increase of just one per cent in terms of those who take out a mortgage.
Martin Ellis, housing economist at Halifax, said: "The sharp decline in home buying costs over the past few years, combined with a significant increase in rents, has greatly improved the financial attractiveness of buying a home.
"This shift has contributed to the increase in the numbers of house purchases, which reached a five year high in 2012."
The report comes at the same time as a similar one from the Bank of Scotland, which discovered that renting in the country is a full six per cent more expensive than buying.
Comments
by Mark_S
Wednesday, February 20 2013, 10:35PM
“A bit of a poor choice of words in the headline. It should have said "Mortgage repayments are now £120 less per month than paying rent on average". The total costs of buying vs renting are significantly lower when you factor in that you own the property at the end of the term, although you do have to pay for maintenance etc which diminishes the overall advantage. Still, on a pension it's a lot easier to survive mortgage and rent-free”