Gap Between Buying And Renting At Its Lowest In A Decade

Gap Between Buying And Renting At Its Lowest In A Decade

The overall gap between UK homebuying and renting has reduced to a 10-year low, according to the latest research conducted by Halifax.

Although the research reveals that renters are still having to pay 18% more in specific areas of the UK.

Homeowners in the UK are typically saving 3 per cent on average (£227 annually) with the gap falling from 17 per cent year-on-year since 2015 when buyers were enjoying an average saving of £1,476 per annum.

This has reversed from 2009 when it was buying that was more expensive, and renters saved on average £209 per year or £17 per month.

However, the buying and renting landscape has changed somewhat over a period of 10 years with house price increases, average monthly buying costs have increased by 26 per cent (£150) – which has been driven by a rise in the average mortgage payment and deposit.

Also, the average cost of renting has increased by 33 per cent (£186) over the past 10 years to £747.

But, the gap between renting and buying is much greater in London, where homeowners save 18 per cent on average (£3,727 annually), followed by the South East (17 per cent), South West and Scotland (both 16 per cent). Buyers across all UK regions save upwards of 10 per cent in comparison to renters in the same location, except Yorkshire and The Humber, where homeowners save only 3per cent on average – £235 per year.

Russell Galley, Managing Director of Halifax, said: 

“The overall gap between home buying and renting is at its smallest margin for 10 years, but this masks some significant regional variations where homeowners are making some considerable savings on monthly costs.

“While Londoners stand to save the most from home ownership compared to renting, buyers in the South East and South West of England and north of the border in Scotland are also reaping the benefits. Buyers in two-thirds of UK regions are saving upwards of £1,000 a year from living in a home they own, with the smallest saving for homeowners in Yorkshire and Humberside at £227.”

Toni Ryder-McMullin

Toni is the Media Officer for Today’s Conveyancer, Today’s Wills & Probate and Today's Family Lawyer. I worked for a law firm for 16 years, during my time at the firm I worked as a company commercial legal secretary for 7 years but changed careers and moved into marketing for the remaining 9 years – where I covered all aspects of marketing. While in the marketing role, I achieved a CIM Professional Certificate in Marketing and CAM Diploma in Digital Marketing.

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