Costs between buying and renting narrowest for nine years: HalifaxCosts between buying and renting narrowest for nine years: Halifax https://www.ngiresidential.co.uk/wp-content/uploads/2019/03/buying-and-renting-1024x576.jpg 1024 576 NGI Residential Mortgages NGI Residential Mortgages https://www.ngiresidential.co.uk/wp-content/uploads/2019/03/buying-and-renting-1024x576.jpg
The annual costs between buying and renting has shrunk to its smallest difference in nine years, according to Halifax.
Data collected by the building society shows that the annual savings for a homeowner in 2018 over a renter were £366, down from £900 in 2017.
The data defines housing costs as comprising mortgage repayments, maintenance, repair, minor alternations, insurance costs, and income lost through saving for a deposit and uses a three-bedroom property in the UK as an example.
Monthly payments for this property type came to, on average, £729 per month in December 2018. In comparison, the average monthly rent on the same property was £759.
Looking at the data on a regional basis, buyers in London made the biggest savings on average, at £1,390 a month for buyers versus £1,763 a month for those who rent – a difference of 21 per cent and an annual figure of £4,475.
In contrast, Yorkshire and Humber recorded the smallest average difference at 5 per cent, with buyers saving £361 last year compared to renters.
Halifax managing director Russell Galley comments: “The gap between buying and renting is narrowing, primarily driven by reduced FTB prices deposits in some regions and continuing house price growth, meaning buyers are paying more on their mortgages.
“With more products available for borrowers, these factors combined have pushed up the price of buying quicker than the price of renting.
“Meanwhile, the cost of rent, household maintenance and average deposits have remained broadly flat.”
* Content Source – Mortgage Strategy.