The analysis, comparing mortgage costs for a three-bed home with average monthly rents for the same type of property, reveals a 24% increase in rental costs in 2023 to £1,258, while homeownership expenses grew by 27% to £1,231.

Nationwide, first-time buyers save £319 annually compared to renters.

However, owning a first home was more expensive than renting in nine out of 12 UK regions or nations last year.

Renters save the most compared to first-time buyers in East England, where they pocket an average of £2,325 extra each year.

Renting in the South East (£1,859), East Midlands (£1,741), and Yorkshire & the Humber (£1,731) also offers significant yearly savings compared to owning a first home.

Only the South West, London, and Scotland see owning a first home as cheaper than renting. The South West leads, with owners being £1,663 better off annually.

Mortgages director at Halifax, Kim Kinnaird, said: “Our latest analysis shows that, in nearly all regions across the UK, first-time buyers are better off renting than owning a similar home. In fact, the only regions where it’s cheaper to own rather than rent are the South West, London and Scotland.

“We know home ownership can offer long-term financial and living stability, and that’s why we believe it’s an important step to take. Our customers want to create a secure future, so it’s a big priority for us to help people get there.

“However, elevated borrowing costs, alongside a lack of available homes to buy, is pushing ownership further out of reach for would-be first-time buyers in many parts of the country. This is why we’re major participants and big supporters of the Government’s affordable home ownership schemes, such as shared ownership and the mortgage guarantee scheme, and we’re committed to helping first-time buyers fulfil their dreams of having a place to call their own.”

Discover More: Learn more about property investment with our guides on the best thing to invest in right now in the UK and buying a rental property.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *