31 August 2011
Halifax claims that first-time buyers would find it £100 cheaper a month to buy rather than rent at present.
These stats were found with the recent Buying vs. Renting Review, which looked at the changes in the cost of buying and renting a typical two bedroom flat since 2008. The study by Halifax has found that the average monthly cost for a first-time buyer to buy a 2 bedroom flat in the UK stands at around £567, 16% less than what it costs to rent a similar abode.
These buying costs include mortgage payments, income lost by funding a deposit, insurance, maintenance and the sum of which comes to £110 lower than the common rent paid for the same property; which stands at £677.
Suren Thiru, Halifax Housing Economist, stated: “The recent decline in the cost of buying a property for first-time buyers compared to renting has been substantial and reflects the drop in both mortgage rates and house prices since 2008 as well as a marked increase in the average rent paid over the past year.
“However, while these affordability gains are welcome, conditions in the housing market for those looking to get onto the property ladder remain challenging. Difficulties in raising a deposit and the current economic uncertainty are likely to mean that number of prospective first-time buyers entering the market will remain relatively subdued in the near term.”
Alternatively in 2008, the average cost of purchasing a property was £212 more expensive a month than the typical rent paid.
