Research suggests house buyers are better off

New research from the Abbey National has suggested that regardless of increases in house prices and the popularity of buy-to-let schemes, it makes better financial sense to buy rather than to rent.

The figures reveal that, taken over 25 years, it is 30 per cent cheaper to buy a property than to rent a home in the UK, with a calculated saving of around £101,679.

The statistics also show that the biggest savings can be made in buying a two bedroom flat, which has a typical renting cost of £263,785 over 25 years, in comparison to the total cost of buying, which stands on average at £141,970. This represents a percentage saving of 46 per cent.

Regional variations also mean that the North West of the UK features the largest average saving in cash terms (around £151,500) while the lowest average saving is in the South West (£60,121).

Bridget Walsh, Head of Mortgage Marketing, commented: "Although we have seen an extremely buoyant housing market in the last year, our research has once again shown the real benefits in buying as opposed to renting. It makes financial sense to buy rather than rent a property in the UK if you are in a position to do so.

"For instance, if you consider that the average monthly rent on a UK property is £677, which would get an eligible homebuyer – who has the relevant deposit – a £125,000 loan at our current 4.25 per cent discounted rate mortgage. The difference is that whilst one is paying for their home, the other is lining their landlord's pockets." (CL)