Buying a house "still cheaper than renting"
Posted: 13 Jun 2006 09:46:21 GMT
A new study has calculated that homeowners are typically better off than renters by an average of £24,372.
But Abbey's annual Rent vs Buy report has also discovered that there are some areas in the country where the cost of owning a property over a 25-year period is actually higher than renting.
Buyers enjoy the biggest advantage over renters in east Scotland, with a saving of 20 per cent over the period. In Wales, however, private tenants can make a saving over buyers of eight per cent, although this does not take into account the fact that homeowners will also own a mortgage-free property at the end of their mortgage term.
Nonetheless, the report shows that the gap between buying and renting is continuing to narrow, with house price inflation over the last year working to the advantage of those in rented accommodation.
Sue Hayes, director of Abbey's Product Marketing, said: "In the short-term, a private tenant might be up to £1,000 a year better off than someone who had bought a property in areas such as Wales and the south-west."
On the other hand, Ms Hayes points out that the desire for homeownership remains high in the UK, as most people still hope to have their own property to show for their financial commitments.
With this in mind, she suggests that despite affordability difficulties, first-time buyers are much better off in the market than out of it.