Buying a home in the UK is now cheaper than renting a property, new figures have revealed.
According to research from Santander Mortgages, average monthly rental prices are now greater than those for the average mortgage repayment in every region of the UK.
Santander found that first-time buyers looking to get on the property ladder could save themselves £2,300 if they were able to buy their own property.
The average monthly rent in the UK currently stands at £995 compared to monthly repayments of £805 for the average first-time buyer household, meaning homeowners could save an average of £190 a month.
The bank said that first-time buyers in the South West could make the biggest monthly savings by switching from renting to property ownership as average monthly rents exceed mortgage payments by over £192.
In London, where rental prices are 56% higher than the UK average, first-time buyers could be £179 better off a month.
Miguel Sard, managing director of mortgages at Santander UK, said: “People assume that buying a property will put them under greater financial pressure, but often the reverse is true. With annual savings averaging well over £2,000, this can really mount up over time and of course once the mortgage is paid off you have a valuable asset to show for it.
“Many prospective first-time buyers see the cost of saving for a deposit as prohibitive, but there are many deals available for smaller deposits. Buying a property is a big financial commitment and there are upfront costs to consider, but over the long-term the financial benefits can be very significant. Getting independent advice and looking for competitive rates either online or through a mortgage advisor is crucial to get the best mortgage to meet potential homeowners individual needs.”
The research found the average price across the country to be £212,610. A buyer with a 21% deposit – the average deposit size for a UK first-time buyer – would require £44,648 in order to get on to the property ladder.
| UK region | Average house price | Average rent per month | Average monthly mortgage bill with 21% deposit | Difference between rents and mortgages |
| South West | £ 187,416 | £902 | £710 | £192 |
| Greater London | £ 363,555 | £1,555 | £1,376 | £179 |
| Scotland | £ 137,504 | £678 | £521 | £157 |
| Wales | £ 129,582 | £618 | £491 | £127 |
| North West | £ 137,874 | £643 | £522 | £121 |
| Yorks & Humber | £ 136,834 | £631 | £518 | £113 |
| West Midlands | £ 151,224 | £674 | £572 | £102 |
| East Midlands | £ 144,712 | £636 | £548 | £88 |
| North East | £ 121,072 | £541 | £458 | £83 |
| South East | £ 246,023 | £959 | £931 | £28 |
| East | £ 215,082 | £816 | £814 | £2 |
| UK | £ 212,610 | £995 | £805 | £190 |
Average buying and rental costs (Source: Santander Mortgages)
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