07 Mar, 2019/ by Homeward Legal /Buyer, First Time Buyer

The gap between the costs of renting and buying is narrowing, but those who buy a home are still better off than those who remain tenants.

The Halifax's latest Buying vs. Renting Review shows that home buyers save an average of £366 per year, compared to £900 in 2017.

Home ownership worth it

That means the gap between the annual costs of buying and renting is the lowest in almost a decade.

However, while the figure is smaller, the review confirms that home ownership is still financially worth it.

According to the Halifax, housing costs in December 2018 were £728 per month. That includes the mortgage on a three-bed home in the UK. The average monthly rent is £759 for the same size of property.

There are wide regional variations in the costs of buying and renting. For example, those buying in Scotland save £1574 compared to renting. In Wales, buyers have annual savings of more than £2000 compared to renters.

Gap is narrowing

Russell Galley, managing director of Halifax, said: "The gap between buying and renting is narrowing, primarily driven by reduced first-time buyer prices deposits in some regions and continuing house price growth, meaning buyers are paying more on their mortgages.

"With more products available for borrowers, these factors have combined to push up the price of buying quicker than the price of renting.

"Meanwhile, the cost of rent, household maintenance and average deposits have remained broadly flat."

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