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Renting costs far outstrip buying

17th September 2012 | back to article listings BACK    print this article PRINT

Renting a home now costs over 130 per month more than the monthly cost of buying, a study has revealed.

Halifax's research showed owning was more affordable than renting in all 12 of the UK regions.

Property buyers pay 18%, or 132, per month less on average than those renting, due to rent payments increasing and property prices and the rates of UK mortgages having fallen.

The average monthly costs for buyers of a typical three-bedroom house, including maintenance and repair as well as the mortgage, was 600 in June compared with 732 in rent payments on the same type of house.

The lender said rent payments rose steadily over the last few years, increasing by 5% in the last year, as buying costs fell by 3%. Four years ago the average cost of buying and owning was 45% - 324 - more than the average monthly rent paid.

However, there has been a 33% drop in new buyers in four years as lenders push for ever higher deposits with 40,526 being the average loan-to-value at roughly a quarter of the property price.

Copyright Press Association 2012

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