Cheaper to buy rather than rent

for sale sign london

When it comes to deciding whether to rent or buy, figures  favour buying as the best option,  research shows that almost £700 a year in savings can be made   by the FTB, this figure however has narrowed as house prices have increased, a savings drop of 34% recorded over the last year.

The biggest hurdle to overcome for  first time buyer is raising the deposit and satisfyng the earnings to value ratio when applying for a mortgage, once through that barrier they will benefit immediately in the savings they will make over renting.

Even though house prices have risen considerably over recent years, a  typical price  for a first-time buyer property has risen by 8 per cent during the past 12 months,   this has been offset by a fall in average mortgage rates, those buying in London as opposed to renting will see the biggest savings, on average £973 over the course of a year, savings do vary across the country.

Mortgage Director of Halifax, Craig McKinlay  reportedly said: “Looking at monthly costs, the combination of lower mortgage rates and declining rental value over the past six years has made it cheaper to buy than to rent.

“While numbers of first-time buyers getting on to the housing ladder in the first six months of both 2014 and 2015 has been over 135,000 – almost double the lows seen in 2009 – the issue of building more new homes in the right places needs to be addressed if we are to see sustainable growth.”

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

First-time buyers get more market town for their money in the Midlands

Leek, West Midlands is the most affordable market town for first-time buyers, at an average £191,359 Immingham, Yorkshire and the Humber most affordable for all buyers, at £176,918 Overall, average house price in market towns now £363,456, up 5% in the last year and 24% in the last five years First-time buyers paying an average…
Read More
Breaking News

Placemaking around rail is a winning blueprint

The Government has announced that around 40,000 new, high-quality homes will be built on surplus railway land, as the Transport Secretary, Heidi Alexander, unlocks brownfield sites across the country for development. Richard Beresford Chief Executive of the National Federation of Builders (NFB), said: “The Government has a chance to set a new standard in placemaking…
Read More
Rightmove logo
Breaking News

Rightmove: Average two-year and five-year fixed mortgage rates now level

Rightmove’s daily mortgage tracker shows that the current average two-year fixed mortgage rate is currently level with the average five-year fixed mortgage rate.   Both the average two-year fixed rate, and five-year fixed rate are currently 4.52% Prior to July 2025, the last time this was the case was in September 2022 before the mini-Budget…
Read More
Breaking News

UK Homemovers Relocating Over 50 Miles

UK Homemovers Now Relocating Over 50 Miles as Buyers Seek Better Value Beyond the City The latest research by GetAgent Exchange, a platform enabling estate agents to monetise out-of-area applicant leads, has found that UK long-distance movers are now relocating an average of 52 miles from their original location, rising to over 80 miles in…
Read More
Breaking News

Beach hut values soar by as much as 100%

The latest research from over-50s property specialists, Regency Living, reveals that it’s not just demand for bricks and mortar that is pushing up house prices in Britain’s most desirable coastal locations, with the average price of a beach hut soaring by as much as 100% in some seaside towns. High cost of coastal homes England’s…
Read More
Breaking News

Revealed: the most lucrative shared living postcodes

New research from COHO, the HMO management platform, reveals that the shared living market in England & Wales generates an estimated monthly rental income of £1.4bn. But which postcode areas are creating the most income from shared living? How much are HMOs making in your postcode? Find out here COHO has analysed the estimated number…
Read More