According to a new survey by the bank Santander, it’s now cheaper to buy a house rather than rent. Stating that people who buy could save themselves around £2,268 annually if they choose to buy rather than pay out rent each month.*
The UK’s average rent per household stands at £912 per month compared to £723 when paying a mortgage. The bank states that one of the main contributing factors to this is the fact that inflation has gone down resulting in the cost of mortgages going down too. Previously in locations such as London and the South East of England renting was cheaper than buying but rents have continued to grow rather than go down, resulting in it being cheaper to buy.
Andrew Gilchrist, Managing Director of Intercounty commented: “One of the biggest challenges facing first time buyers is trying to save up a deposit to put down on a property when renting. Many would-be first time buyers are considering alternatives such as returning to live with Mum and Dad whilst they save up, the Boomerang Generation. Hence the growth of the multi-generation family home.’
He continued; “If you are lucky enough to have support from the bank of Mum and Dad then the advantages of buying hugely outweigh renting, not just because of the difference annually for paying out rent but also because as long-term you are investing in your own property rather than in a rental property.”
“There are also lots of other ways in which you can secure a property such as the Help to Buy Schemes, we often have first time properties aimed at the first time market. If you find that you can’t buy a property outright then perhaps you could go into it with a family member or consider a shared ownership property. The good thing is that there are plenty of options available for those people who are really serious about getting on the property ladder,’ he added.
If you would like to find out more about shared ownership properties or more information about the Help to Buy scheme then please pop into your local branch of Intercounty or call our team.
Source: 20th June, 2018*https://www.todaysconveyancer.co.uk/main-news/research-shows-buying-cheaper-renting-uk-regions/