A review by Halifax that has compared buying with renting has shown that the cost of having a three bedroomed house is cheaper if you buy it rather than if you rent. They estimate that in December the cost of renting this type of property was over £700 a month but if you bought it the mortgage rate would be about £600 per month.
The review doesn’t just look at straight up mortgage payments however and considers other things such as the income you might have lost by having to fund a deposit and other costs about buying a property including repair and maintenance. The information is based on data that the Halifax hold in their database as well as information from the National Statistics Office and the Bank of England.
Since 2008, the cost of buying a home has fallen by over £300 and the monthly mortgage rate has dropped by two percentage points. In 2008 it was more expensive to buy a home, around 30 percent more, and this situation has dramatically changed today.
Purchasing a house is more cost-effective in 11 out of 12 regions in the UK according to the information from the Halifax. Wales is the only part of the country where it remains cheaper to rent a property than buy one.
A housing economist at the Halifax, Martin Ellis, has commented, “This increased affordability has meant that people are paying less on their mortgages. The cost of renting also increased because there is a strong demand for rental accommodation. Despite these promising facts, the number of people looking to buy a home has declined because people are struggling to find enough money to make a deposit on a property.”