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First time buyers in north west 'better off' renting according to high street bank

Document Cited in Related
Vincent
Published date27 March 2024
Publication titleManchester Evening News: Web Edition Articles (England)
The bank says that monthly home-owning costs for first-time buyers have risen 113 per cent in the last decade, while rental costs have gone up by 82pc. The monthly cost of owning your first home in the north west is now £1,030, with the average rent costing £907

This means that renters will save around £1,475 a year, according to the latest Halifax Owning vs Renting Review, which tracks the costs of owning and renting a three-bedroom property for a typical first-time buyer across the UK.

A decade ago, the average monthly mortgage in the UK cost £605, whilst the standard rent was £750 per month -an annual difference of £1,388. In 2023, owning a home in the UK was still considered to be more affordable than renting, with the average mortgage costing £1,231 whilst average rent prices were £1,258 -meaning homeowners would save around £319 a year.

The monthly cost of owning a first home is now higher than the equivalent rental cost in nine out 12 UK regions. Renters are making the biggest savings compared to first-time buyers in the East of England, where they £2,325 better off on average each year.

Renting in the South East £1,859, East Midlands £1,741 and Yorkshire & the Humber £1,731 also saw significant yearly savings when compared to owning a first home. The South West, London and Scotland are now the only regions where owning a first home is cheaper than renting. The largest annual savings are in the South West, where owners are £1,663 better off.

There are many advantages to owning a home compared to renting, says Halifax, as it can offer long-term financial stability and remains an aspiration for many people.

Halifax mortgages director Kim Kinnaird said: "Our latest analysis shows that, in nearly all regions across the UK, first-time buyers are better off renting than owning a similar home. In fact, the only regions where it’s cheaper to own rather than rent, are the South West, London and Scotland.

"We know home ownership can offer long term financial and living stability and that's why we believe it’s an important step to take. Our customers want to create a...

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