Buying a Home Cheaper Than Renting

Article excerpt

THE cost of buying a home has become PS1,440 a year cheaper than renting, according to research from Halifax.

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. In Wales, the cost of buying was PS470 and PS486 for renting.

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. …