Cheaper to buy than rent in the UK
17th Sep 2012
Many people in the UK now choose to move into the private rental sector rather than purchasing properties for sale. However, a new report has found that despite the initial high costs, it can actually be cheaper to buy.
According to Halifax, the cost of purchasing your own home with a mortgage can work out at £130 less per month in the UK than paying rent to a private landlord.
The study looked at mortgage costs against rent, as well as the money lost through paying a deposit rather than saving and maintaining a property.
Overall, the monthly outlay now stands at £600 for those who are buying a three-bedroom house, while those renting the same property would be paying an average of £732. Rental costs have recently soared to this all-time high figure.
The lender said that the cost of purchasing has fallen by 43 per cent in the last four years, meaning that housing affordability in this sector has greatly improved, mainly thanks to a fall in the price of housing.
Martin Ellis, housing economist at Halifax, said: "The improvement is due to a combination of lower mortgage rates and declining house prices. In contrast, market conditions for renters have deteriorated as rents have risen in the past two years."
Posted by Staff Writer: Frances McDonald
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