Buying a home: cheaper than renting?

Buying a home: cheaper than renting?

Halifax says the associated costs of owning a three bedroom house for a typical first-time buyer stood at £677 in June this year, compared with the average monthly rent for the same property, which was £787 per month.

Five years ago the cost of buying a property was £734 per month for a first-time purchase - £37 higher than the £697 typically paid in rent for the same property.

Halifax says the key driver of the decline in buying costs is falling mortgage rates, while rents have been rising. The typical first-time buyer in June 2014 was on a rate of 3.09 per cent, compared with an average 4.92 per cent five years earlier, resulting in a £57 decrease in the average monthly payment.

The number of first-time buyer transactions has rocketed during that period. In the 12 months to June 2009 there were 155,700 first-time buyer transactions, compared with 301,300 in the 12 months to June this year, 29 per cent up on the 233,400 transactions a year earlier.

If you are a first time buyer and would like more information on the services we have to offer, contact us today on 020 8997 3915 or enquiries@paulalexander.org.uk.

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