Buying a Home 'PS1,440 Cheaper Than Renting'
Byline: RHODRI EVANS Assistant Business Editor firstname.lastname@example.org
RENT COSTS GO UP AS DEPOSIT TROUBLE HITS WOULD-BE BUYERS THE cost of buying a home has become PS1,440 a year less 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-bedroom house stood at PS621 in December, which is PS120 less 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.
The gap between buying and renting has widened by PS21 a month over the past year. At the end of 2011, the monthly cost of home-buying was PS99 lower than renting.
In Wales the figures showed it is on average PS16 a month cheaper to buy a home than rent. The average cost of home-buying in Wales came in at PS470 a month, compared to PS486 a month to rent. …