Buying is now cheaper than renting in all UK regions

Buying is now cheaper than renting in all UK regions

With the rise of 'generation rent' and the continued move away from home ownership (only 64.8 per cent of Brits now live in a home they own), you would be forgiven for thinking that it is far cheaper to rent a home than it is to buy one. 

However, a new report has claimed that the opposite is true, and as both sectors in the property market continue their impressive levels of growth, it has become cheaper to buy a home in the UK than it is to rent one. 

According to the research from Santander Mortgages, it would now cost tenants more in monthly rental payments in the UK than it would to get themselves a mortgage and pay it back monthly. 

In fact, the company said, those who choose to buy a home could be saving themselves as much as £2,300 per year by purchasing than they would renting the same property over a long period of time. 

For first-time buyers, Santander reports, the average repayment on a mortgage would be £805 per month. This is compared to the average rental price in the market in 2015, which now stands at £995 per calendar month. 

The biggest savings for those who want to get a foot on the property ladder for the first time can be found in the south-west of England, where making the switch from renting to property ownership would save residents £192 per month on average. 

In London, those who now choose to buy rather than renting can even find it cheaper, in spite of the fact house prices in the capital have reached a staggering 56 per cent higher than the average for the nation as a whole. Those who buy their first home in London can save £179 per month on average over renting. 

"People assume that buying a property will put them under greater financial pressure, but often the reverse is true. With annual savings averaging well over £2,000, this can really mount up over time and of course once the mortgage is paid off you have a valuable asset to show for it," said Miguel Sard, managing director of mortgages at Santander UK.