The average saving per year of buying a home instead of renting a home is £900, research from mortgage lender Halifax shows.
Buying a property is more financially sound than renting one, and the ‘greatest annual saving’ in London amounts to £2,191.
Of the findings, Managing Director at Halifax, Russell Galley, said: “The gap between buying and renting has widened significantly, primarily driven by a reduction in mortgage rates and a more competitive market pushing down monthly payments”.
Galley continued: “Despite having to put down a sizeable deposit up front, home owners are overall better off than renters in all parts of the UK”.
It’s also been reported that some landlords are leaving the buy-to-let market following the introduction of various tax and regulation changes, which may succeed in pushing up rent prices even more for tenants.
The government has given a helping hand to first-time buyers, abolishing stamp duty on the purchase of property worth up to £300,000, with stamp duty savings for first-time buyers if they purchase a property worth up to £500,000, which will help some first-time buyers in London.
But these findings emphasise the struggles many renters face should they be trying to save for a deposit on a property
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