Homeowners across the UK are significantly better off than renters, research has found.
In just over a decade, we’ve seen a complete reversal of the situation in 2009, when renters saved an average of £209 per year/£17 per month.
The gap between costs paid by homeowners and renters is largest in London, where homeowners are 18% better off with savings of £3,727 a year on average.
In second place is the South East, where homeowners save 17%, followed closely by Scotland and the South West at 16%.
The research, by Halifax, looks at the costs associated with buying a three-bedroom home on a mortgage compared to renting a similar property.
|Area||Average monthly buying costs||Average monthly rental cost||Percentage difference||Average amount saved by buying (monthly)||Average amount saved by buying (annually)|
|Yorkshire and the Humber||£544||£564||3%||£20||£235|
(Note: average buying costs include mortgage payments, income lost by funding a deposit rather than saving, insurance costs and money put towards household maintenance and repair. One-off costs such as stamp duty, valuation and legal fees aren’t included.)
Russell Galley, Managing Director of Halifax, said: “The overall gap between home buying and renting is at its smallest margin for 10 years, but this masks significant regional variations where homeowners are making some considerable savings on monthly costs.
“While Londoners stand to save the most from home ownership compared to renting, buyers in the South East and South West of England and north of the border in Scotland are also reaping the benefits.
“Buyers in two-thirds of UK regions are saving upwards of £1,000 a year from living in a home they own.”