Property investment is now one of the main ways Britons can save money, according to research by Halifax. It has been revealed that choosing to put money in bricks and mortar could save the average renter GBP 120. The cost of buying a property is now 16 per cent cheaper than renting and homebuyer costs now stand 34 per cent lower than in 2008. Conversely, over the last three years, rents have risen by 14 per cent.
In real terms, the average monthly cost of buying a three bedroom house stood at GBP 621 in December 2012, compared to the GBP 741 paid in rent on the same property. Over a year, this is the equivalent to a saving of GBP 1,440 - money that would undoubtedly make life a lot easier once freed up.
Over the last year alone, the gap between the cost of buying and renting has widened considerably by GBP 21. Halifax claim that at the end of 2011, the monthly costs associated with buying a home stood at GBP 99 - 14 per cent lower than renting. This has risen by one per cent over the past year, while the cost of renting has soared by four per cent.
This difference in price isn't just present in one or two areas of the country either. In fact, it is cheaper to buy in all 12 regions of the UK. London tops the list once again, with buying considerably cheaper than renting. In the capital, the typical homeowner pays 15 per cent less a month than the average renter, with buying costs standing at GBP 1,101 for investors, compared to GBP 1,294.
Martin Ellis, housing economist at Halifax, commented: "The sharp decline in home buying costs over the past few years, combined with a significant increase in rents, has greatly improved the financial attractiveness of buying a home. This shift has contributed to the increase in the numbers of house purchases, which reached a five year high in 2012."
- Monday 18 February 2013