Morgage funds now cheaper than renting in all areas of the UK besides one

Average proudly owning prices – together with mortgage funds, upkeep, repairs, minor alterations and insurance coverage prices in addition to revenue misplaced by funding a deposit fairly than saving – come to £1,828 within the capital. 

With the typical lease reaching £2,074, these on London’s property ladder save £246 a month, understanding to £2,950 a yr. 

Homeowners within the South West had been on the second-biggest benefit, saving £2,492 yearly, adopted by Scotland (£2,295) and the North West (£1,737).

Of the UK’s 12 areas, solely within the East of England is it cheaper to lease. With homeowning prices of £1,212 and rents of £1,122 on common, tenants there save £1,078 over a yr.

Halifax’s Mortgages Director, Kim Kinnaird stated: “Our latest analysis shows that becoming a homeowner can bring significant savings for people. Nationally, homeowners are almost £500 better off than renters each year. 

“Of course, making the move from renting to home ownership can be difficult for many, as raising a sufficient deposit and then finding the right property can be challenging.”

Housing affordability in Britain has worsened considerably over the past 20 years. Back in 2000, the typical property in England price 4.2 instances the median annual wage. In 2022, with home costs hovering just under £300,000 and salaries at £33,000, this ratio has nearly doubled to eight.3.

Halifax’s information present deposits being raised for mortgages within the North East are the bottom within the UK at £32,920 – equal to 19 % of the property worth – and highest in London at £188,663 (32 %).

Ms Kinnaird added: “While a predicted fall in house prices this year will be welcome news for those looking to buy their first home, it doesn’t change the fact that getting on the property ladder remains expensive – a problem that is compounded when rents are high, impacting the ability to save.”