Buying saves £1,400 a year over renting

Buyers save around £1,400 a year compared to renters, mortgage data has shown. Buyers save £115 a month on average on housing costs if they can afford to get on the property ladder, Halifax data suggests. The bank compared the typical monthly rent for a three-bedroom property in Britain with average buying costs, which include mortgage payments, household maintenance, repairs, minor alterations, insurance and income "lost" from funding a deposit instead of saving. Average buy-to-let monthly rents increased by 6% to £874 between December 2020 and December last year, while buying costs rose 2% to £759 a month. Esther Dijkstra, mortgages director at Halifax, said: "Over the last year we have seen record numbers of buyers entering the market, moving to bigger properties and taking advantage of the stamp duty holiday. However, historic lows for interest rates have kept mortgage costs down, compared to rents."

The Times (19/03/2022)