'Cheaper to buy than rent' for FTBs

Posted: 30 Aug 2011 11:52:28 GMT

The monthly costs associated with purchasing a property for FTBs is around £100 cheaper than renting, it has been found.

It is considerably cheaper for first-time buyers (FTBs) to purchase property than it is to rent accommodation, new research has suggested.

According to the latest Halifax Buying Versus Renting Review, the cost of owning a dwelling is around £100 less a month than it is to rent.

The study revealed an FTB buying a two-bedroom flat will pay around £567 a month at present - 16 per cent less than the £677 forked out by renters living in a similar abode.

Suren Thiru, housing economist at Halifax, said: "The recent decline in the cost of buying a property for first-time buyers compared to renting has been substantial and reflects the drop in both mortgage rates and house prices."

The industry figure added, however, that conditions for those looking to get their first foot on the property ladder remain challenging, with many having difficulties affording a deposit.

Earlier in the month, Helen Adams, managing director of FirstRungNow.com, claimed FTBs are looking at all of the options currently available to them, including low-cost home ownership schemes.
 

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