Byline: Vicky Shaw
THE cost of buying a home has become PS1,440 a year cheaper than renting, research from Halifax found today . The gap has widened in recent years amid house price falls and record low interest rates which have made borrowing cheaper for those who can get access to a mortgage.
Meanwhile, increased demand in the rental sector from those struggling to raise a deposit or meet lenders' borrowing criteria has pushed up rental costs.
Halifax said the average monthly costs associated with buying a three-bedroomed house stood at PS621 in December, which is PS120 cheaper than the typical monthly rent of PS741 on a similar property.
Average buying costs include mortgage payments, income lost by funding a deposit rather than having savings and spending on repairs, using figures from Halifax's own database as well as official sources.
The latest figures are an about-turn from December 2008, when buying a home was PS217 a month more expensive than renting. Home buying costs have declined by one third (34%) over the past four years, while average monthly rents have been pushed up by 14%, the study found. …