Gap between renting and buying narrows to just £366 a year

The gap between the cost of buying and renting is down 59% to its lowest level in almost a decade, according to the latest Halifax research

Related topics:  Mortgages
Rozi Jones
4th March 2019
bridging lending gap
"The gap between buying and renting is narrowing, primarily driven by reduced first-time buyer prices deposits in some regions and continuing house price growth."

Buyers are saving just £366 per year, compared to £900 in 2017, as falling first-time buyer deposits and rising house prices mean buyers are paying more on their mortgages.

Housing costs, including a mortgage on a three-bed home in the UK, were £729 a month in December 2018, compared to the average monthly rent of £759 for the same property type.

Outside of London, Scottish buyers have the highest average annual savings of 20% (£1,574) vs renting, compared to the most humble financial gain in Yorkshire where the cost of buying is only 5% lower than renting at £361.

Regionally, buyers are better off than renters in Wales with annual savings of over £2,000 (14%) where by in Northern Ireland mortgage payers are saving 7% less than their Welsh counterparts at £382 annually.

Russell Galley, managing director at Halifax, said: “The gap between buying and renting is narrowing, primarily driven by reduced first-time buyer prices deposits in some regions and continuing house price growth, meaning buyers are paying more on their mortgages.

“With more products available for borrowers, these factors combined have pushed up the price of buying quicker than the price of renting. Meanwhile, the cost of rent, household maintenance and average deposits have remained broadly flat.”

More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.