Buying a home in the UK is now cheaper than renting

30 January 2012

The typical monthly cost of buying a three bedroom house in December 2011 was £600.

Three years ago the average cost of buying was 29% high than the average rent paid.

In recent years the costs of home buying have fallen by more than a quarter since 2008. This cost reduction has been driven by a decline in the average monthly mortgage payment of nearly a third due to falling mortgage rates and house prices.

The average mortgage rate for a new borrower was reduced to an average of 3.63% in 2011 compared to 5.78% in 2008 whilst the average house price has dropped by 11%.

The average cost of renting has gone up 9% since 2009. Halifax said the higher demand for rental property, driven by difficulties for potential buyers entering the housing market has pushed up rents.

Back to index