Buying is 16% cheaper than renting

People who are living in rental homes should now be doing their best to get a foot on the property ladder, after it was announced that the cost of renting a home is now far higher in some regions of Britain than buying.

According to the latest figures released by the Halifax, it is now 16 per cent cheaper on average to buy a home in the UK, with regards to monthly payments, than it is to rent one.

Halifax said that the average monthly cost for those who are purchasing UK property is around £600, while people who are renting are paying £716 per month, meaning that it can cost over £100 less to buy properties for sale.

Wales is the only area of the UK where it is cheaper to rent than it is to buy.

This is a significant turnaround when compared to 2008, when the average cost of buying was 29 per cent higher than renting.

In addition, the cost of buying a home now amounts to 29 per cent of the average UK salary, compared to 2008 when it accounted for 47 per cent of what people were earning.

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. At the same time, rents have risen due to strong demand for rented accommodation."

However, the Royal Bank of Scotland has said that the cost of buying a house itself is not the main issue for those who are looking to get their foot on the first rung of the property ladder. It said that rising living costs were offsetting the fall in monthly mortgage repayments, making people think twice about buying their own property.