Have a nose around some of the most weird and wonderful houses currently available on the UK market
Buying cheaper than renting home
Rent payments have gone up by five per cent over the last year
The monthly cost of buying your own home is now more than £130 a month cheaper than renting, research has revealed.
Rising rent payments combined with lower property prices and mortgage rates now mean that property buyers pay 18% - or £132 - a month less on average than those who rent, according to Halifax.
The lender said that average monthly costs for buyers of a typical three-bedroom house - including mortgage payments and household maintenance and repair costs - were £600 in June, against £732 in rent paid on the same type of property.
Rent payments have risen steadily in the past few years, up 5% in the past year alone, while buying costs have fallen 3%. Four years ago, the average cost of buying and owning a home cost 45% - or £324 - more than the average monthly rent paid.
But despite the improvements in affordability, the number of new buyers in the market has fallen by a dramatic 33% in the last four years as lenders are demanding increasingly high deposits.
The average loan-to-value now stands at around a quarter of the property price, at £40,526.
Martin Ellis, housing economist at Halifax, said: "Those getting on the housing ladder still face challenges, most notably in getting a deposit, and this challenge, along with the considerable uncertainty regarding the economic outlook, is still contributing to subdued housing demand. However, it is worth noting that once homebuyers are on the first rung, their monthly costs are notably lower."
The research shows that owning a home was more affordable than renting in all 12 regions across the UK.
In London, the typical homebuyer pays 14%, or £177, a month less than the average renter. The difference is the smallest in the East Midlands, where a homeowner pays 2% less a month than a renter.
A record low bank base rate of 0.5% since the financial crisis struck has seen the average mortgage interest payment fall to 3.82% in June from 5.91% in June 2008. The typical UK house price has fallen by a tenth over the same period.
related stories on msn
This may be the case in the cities,(especially London where rents are extortionate) but not in the rural areas. Its the old story of Supply and Demand that dictates rents. (High demand = high rents, Low demand = low rents)
Example A three bed house in the West Wales area rents for around £420/month - not expensive!
The same house or flat in london over £1000??
Also the high deposit required to buy is prohibitive to most
As long as the landlords know that the banks want a big payment up front they can keep their rents high and make it much harder for people to save, as it is going to pay a higher rent, (BIG SCAM)
Tennants hate paying rent - tough luck - shut up and pay up. This country provides virtually limitless potential for anyone to succeed in life. Stop moaning. You have simply not fulfilled your potential in life.
Buying a HOME is quite different from buying a house. House prices may seem high - but - what price can one put on owning your HOME. Its an emotion as much as an investment.
When a landlord buys a house its about the £££££ and nothing else. Its a simple business transaction. Its a long term investment that WILL pay hansomely in years to come - because - the lazy and feckless always need someone else to put a roof over their heads.
Mucking about with "is it cheaper today to rent or buy" misses the point entirely. Long term its always cheaper to buy and can only be judged over the next 50 years - not next month!
more on msn money
msn money poll
Do you think house prices will continue to rise in the next year?
Thanks for being one of the first people to vote. Results will be available soon. Check for results
- Yes, I think they will rise by more than 10%
- Yes, I think they will rise between zero and 10%
- No, I think they will stay the same
- No, I think they will fall