News Categories

• Banking
• Breakdown Cover
• Car Insurance
• Credit Cards
• Home Insurance
• Insurance
• Life Insurance
• Loans
• Money
• Mortgages
• Pensions
• Pet Insurance
• Travel Insurance

News Archive

• May 2012
• April 2012
• March 2012
• February 2012
• January 2012
• December 2011
• November 2011
• October 2011
• September 2011
• August 2011
• July 2011
• June 2011

Newsletter

Buying properties becomes cheaper than renting

By Marianne Straker, Mon 30 Jan 2012 - Published in Home Insurance

Buying a house is now 16 per cent cheaper than renting, according to new research by Halifax.

While the company recently revealed that mortgage rates were at their lowest level for 14 years, it also found that purchasing a property is over £100 cheaper than leasing it off a landlord.

The firm's Buying vs. Renting Review found that the typical monthly cost of buying a three-bedroom house was £600 in December 2011, while the average rent on the same property was £716.

It shows a massive turnaround from 2008, when buying was 29 per cent more expensive than renting, while in the past year buying costs fell by five per cent.

Martin Ellis, housing economist at Halifax, said: "The affordability gains for buyers relative to renters in the last three years have been significant. The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates."