Figures from the Halifax have indicated that first time buyers in the UK are £742, 9%, a year better off than those who rent.1
For a first time buyer purchasing a three-bedroom home, the average monthly buying cost, including mortgage payments, was £682 in December 2014. This is £62 less than a tenant will pay in rent, at £720 per month on the same property type.1
Craig McKinlay, Mortgage Director at Halifax, comments on the research: “Average home buying costs are significantly lower than average rental costs, providing first time buyers with a large financial saving if they can get on the housing ladder.
“While the timescales associated with raising a sufficient deposit to buy a home present a hurdle to many potential first time buyers, the significant difference in costs between buying and renting, combined with still low mortgage rates, increased consumer confidence and the Help to Buy scheme, have all been factors driving the substantial rise in first time buyers over the past two years.”1
However, in 2014, the average monthly buying cost rose by £46, whereas the average monthly rent increase was just £28.1
326,500 first time buyers stepped onto the property ladder in 2014, a 22% rise from the previous year.1
Within London, the average monthly cost for first time buyers stood at £1,275, but tenants were paying £1,387 per month in rent.1
The highest cost differences were found in the North West at 17%, Scotland at 11%, and Wales with 8%.1
The lowest cost differences were seen at 1% in the East Midlands, 2% in the South East, and 4% in Yorkshire.1
Around the country, the figures are as follows1:
|
Area |
Monthly savings by buying |
| Scotland | £65, 11% |
| North | £35, 7% |
| Northern Ireland | £28, 7% |
| Yorkshire and Humberside | £19, 4% |
| North West | £109, 17% |
| East Midlands | £6, 1% |
| West Midlands | £30, 5% |
| Wales | £42, 8% |
| East Anglia | £37, 5% |
| London | £112, 8% |
| South East | £15, 2% |
| South West | £54, 7% |
The average monthly saving by buying in the UK is £62, 9%.1
1http://www.whathouse.com/news/article/54e326894031b95501c2e3ca/First-time+buyers+are+%25C2%25A3742+a+year+better+off+than+those+who+rent[/vc_column_text][/vc_column][/vc_row]