Buying A Home Is Cheaper Than Renting
The monthly cost of buying your own home is now more than £130 a month cheaper than renting, new research has revealed.
Rising rent payments combined with lower property prices and mortgage rates now mean that property buyers pay 18% - or £132 - a month less on average than those who rent, according to Halifax.
The lender said that average monthly costs for buyers of a typical three-bedroom house - including mortgage payments and household maintenance and repair costs - were £600 in June, against £732 in rent paid on the same type of property.
Rent payments have risen steadily in the past few years, up 5% in the past year alone, while buying costs have fallen 3%.
Four years ago, the average cost of buying and owning a home cost 45% - or £324 - more than the average monthly rent paid.
But despite the improvements in affordability, the number of new buyers in the market has fallen by a dramatic 33% in the last four years as lenders are demanding increasingly high deposits.
The average loan-to-value now stands at around a quarter of the property price, at £40,526.
Martin Ellis, housing economist at Halifax, said: "Those getting on the housing ladder still face challenges, most notably in getting a deposit, and this challenge, along with the considerable uncertainty regarding the economic outlook, is still contributing to subdued housing demand.
"However, it is worth noting that once homebuyers are on the first rung, their monthly costs are notably lower."
The research shows that owning a home was more affordable than renting in all 12 regions across the UK.
what do you think?
Spain here we come! Same problems that brought down Spain to needing to have their banks bailed out and the govt here has learnt nothing from the Spanish govt.
I own my own house. I am a single mum of 3 kids, I work 42 hours a week & dont get any help but my mortgage is £50 week less than my friends who rent off council. & I struggke
I have my house on the market and I have had 6 people in but only 1 made an offer. My house is for sale at £160,000 even though a similar exact size house next to mine was sold last year for £185,000 and he offered me £135,000 . I want to ring him but the estate agents say I cannot. When I bought my house it took 1 week and cost me £90 with a solicitor. Now it might take about 6-8 weeks and solicitors have the money for the time and charge people about £1000 . Estate agents 16 years ago charged 0.5% with no VAT but now they charge 2% plus VAT
Getting a mortgage is impossible now, unless you on 50k a year or more!!!
And have a deposit approaching 50K as well!!