Buying a house ‘£120 cheaper a month than renting’

Halifax’s research shows that the gap between the cost of owning a home and renting a property is widening year on year.

The building society has released figures for December 2012 that show on average the monthly costs associated with buying a three bed house, including mortgage payments, loss of savings interest and the cost of running repairs, was £621.

In contrast, the cost of renting the same property on average was £741 – a difference of £120.

In the previous year, Halifax’s figures showed that at the end of 2011 that difference was only £99. In 2008, it was actually the other way around – buying a home back then was £218 a month more expensive than the equivalent rental price.

Martin Ellis, housing economist at Halifax, said the reason for this was that many people were forced into renting as they were unable to raise the deposit for a property.

He said: “Concerns over job security and raising a deposit are the main obstacles to people buying their own home.

“However, it is worth noting that once home buyers are on the first rung of the ladder, their monthly costs are notably lower.”

Halifax’s own figures show the pattern is repeated all across the nation. The highest difference in London, which showed renting was £193 a month more expensive.

By contrast the difference in Yorkshire and the Humber was just £1 a month.

Regional variations

London

Average monthly buying cost: £1,101
Average rental cost:: £1,294
Difference: £193

Northern Ireland

Average monthly buying cost:: £362
Average rental cost: £421
Difference: £60

South East

Average monthly buying cost: £839
Average rental cost: £889
Difference: £51

South West

Average monthly buying cost: £697
Average rental cost: £737
Difference: £39

East Anglia

Average monthly buying cost: £606
Average rental cost: £645
Difference: £39

West Midlands

Average monthly buying cost: £525
Average rental cost: £560
Difference: £34

Scotland

Average monthly buying cost: £524
Average rental cost: £558
Difference: £34

North West

Average monthly buying cost: £498
Average rental cost: £526
Difference: £28

North

Average monthly buying cost: £451
Average rental cost: £478
Difference: £27

Wales

Average monthly buying cost: £470
Average rental cost: £486
Difference: £16

East Midlands

Average monthly buying cost: £505
Average rental cost: £513
Difference: £8

Yorkshire and the Humber

Average monthly buying cost: £482
Average rental cost: £483
Difference: £1

Source: Halifax