On average it is £130 a month cheaper to buy a property than to rent one, according to Halifax.
According to the high street lender, rents have risen to such an extent that paying a mortgage offers an average 18 per cent a month saving over renting.
It estimated that owning a three bedroom house requires a monthly spend of £600 to cover mortgage and repair costs, while renting the same property would cost £732 a month.
In its report, Halifax said that four years ago, the cost of home ownership was 45 per cent a month more than renting.
And, sectors such as the repair and upgrade trades have seen an increase in business because of this reversal.
Kitchen Doors Workshop are an online replacement kitchen door supplier based in East Sussex. It has noted an increase in orders from first time buyers this year.
Managing director, Robert Clark said: “There has long been a perception that renting is the more affordable option but with tougher lending criteria for mortgages and bigger deposits required, many were forced into the private rented sector, pushing up rental yields. Couple this with falling house prices and suddenly, the reality is very different and home ownership is the more affordable solution.
“Although it is now cheaper to own than rent, it can still be problematic for many first time buyers to get a deposit together as 80-90 per cent loan-to-value mortgages continue to be relatively hard to come by. For those who can save for a deposit, there is often little left for DIY and personalization of the new property, making the monthly savings on rent all the more valuable.”
Loading ...