Purchasing a Property Could Save You £100 a Month...

New research has shown that purchasing a property in the UK could be over £100 a month cheaper than renting. The Halifax Buying Versus Renting Review has shown that purchasing a property may be a more cost effective way of living. The study considered a number of buying costs, including mortgage payments, money lost through financing a deposit and cash spent on repairs.

A number of sources were used to collate the data, including figures from Halifax's own statistics database, the Office for National Statistics, the Bank of England and Birmingham Midshires.

The research found that purchasing a three bedroom property in December cost £600 every four weeks. On average, this is 16% less than the average monthly rent paid for the same type of accommodation. These findings are in contrast to a similar study conducted in 2008, where buying a home was found to be 29% more expensive than renting.

Martin Ellis, housing economist at Halifax, noted: "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, Mr Ellis noted that the number of purchases has continued to decrease in recent times. He observed the on-going challenges of raising a deposit and uncertainty regarding the condition of the wider UK economy as reasons for this lack of activity. 

This information follows recent research conducted by the Association of Letting Agents, which indicated that the rental market is beginning to soften, with demands for this type of accommodation starting to ease.

Source: http://www.houseladder.co.uk