It is currently cheaper to take out a mortgage than rent property, new research has shown.
According to the Halifax Buying Versus Renting Review, it is more cost-effective to purchase a dwelling rather than living in landlord-owned accommodation.
The study looked at average buying costs such as mortgage payments, money lost through paying a deposit and cash spent on repairs, insurance and household maintenance.
Based on figures from the Bank of England, the Office for National Statistics, Birmingham Midshires and its own housing database, Halifax discovered that buying an abode is more than £1,000 a month cheaper than renting in the UK at the moment.
Martin Ellis, housing economist at Halifax – which is a division of Bank of Scotland – noted the affordability gains for buyers when compared with renters have been considerable in the last three years.
The industry figure observed: “The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates.”
Meanwhile, strong demand among tenants has led to a significant rise in the costs involved when renting, he added.
