The cost of owning a home in the UK is now on average £124 per month lower than renting (£1,488 a year), according to research by Halifax.
The average monthly costs associated with owning a three bedroom house stood at £645 in December 2013; which is 16% lower than the typical monthly rent of £769 paid on the same property type. This is the largest cash difference since 2009, when the figure stood at just £6 and average monthly costs for owning and renting were £646 and £652 respectively.
The gap between the costs of owning and renting is being driven by average monthly rents increasing by over £100 since 2009, while average monthly ownership costs have remained relatively unchanged over the same period.
Today’s picture is in stark contrast to the situation for renters five years ago when, in 2008, the monthly ownership cost was on average £226 (31%) higher than rental costs.
Craig McKinlay, Mortgage Director, Halifax said: “There has been a substantial improvement in the affordability of owning compared to renting in recent years, which has been driven by the fact that monthly home ownership costs have fallen by a third (32%) since 2008.
“Buying will continue to be a more financially attractive option as the cost of owning a home remains stable. With greater availability of mortgages that require smaller deposits, the property ladder has also become even more accessible for those who can afford the monthly costs of owning but had previously not been able to save the necessary deposit.”
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