Owning Property Still Cheaper Than Renting

A report shows that homeowners save more than £300 a year than they would if they rented a property of the same size.

It is still financially beneficial to own a property rather than renting one, with homeowners saving more than £300 a year than they would if they rented a property of the same size. 

Of course, being able to spend less on their housing costs also means they can use the difference to update their house with the latest features, including a new electric fire in Stoves, Staffordshire, or energy-efficient windows.

According to the latest figures from Halifax’s Buying vs Renting Review, buyers save £366 a year, typically paying £729 in monthly costs for a house they own, compared with £759 a month if they rented.

However, this saving of £30 a month is significantly less than in December 2011 when homeowners were £81 better off a month, totalling a saving of £972 a year. 

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.”

He added: “With more products available for borrowers, these factors combined have pushed up the price of buying quicker than the price of renting.”

Despite the difference between buying and renting being far less than it has been previously, the findings still show the benefit of owning a property as opposed to being a tenant.

One of the areas in the UK where this is definitely the case is the Midlands. According to Halifax, those owning a property in the East Midlands are able to save £926 a year. However, this is still less than those living in the West Midlands who spend £1,187 less annually on their home ownership costs, including their mortgage, than they would if they rented the same home. 

This could be one of the main reasons why so many Brits still place such an emphasis on getting on the property ladder. Not only does it allow them to take ownership of a house, being able to make changes to the building so it really feels like their home, but it also helps them save money in the long run. 

Indeed, Halifax’s First-Time Buyer Review showed FTBs recently made up the largest proportion of the property market in 23 years. They now account for more than half of all house purchases, which is the highest level seen
since 1995.

This is the result of the number of FTBs having increased for seven years in a row, rising by another two per cent over the last 12 months. In total, FTB figures have grown by 92 per cent from 192,000 in 2008 to 372,000
in 2018. 

Mr Galley stated this huge increase in FTBs over the last ten years “shows that the factors reducing some of the associated costs – such as continued low mortgage rates and Stamp Duty – are supporting the increasing number of people taking their first step on to the property ladder”.

If you have recently bought a property and want to update it with new fireplaces, why not call us today or take a look at our Norton Canes showroom?


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