The average saving per year of buying a home instead of renting a home is £900, research from mortgage lender Halifax shows.

Buying is more financially sound than renting in London

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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Property Wire

About the author

Nicolas Holmes

Nick joined Robert Holmes to inject fresh ideas and help grow the New Homes department of Robert Holmes as well as helping to inject technology into the business and to grow its client base. Together with one of the Directors Nick is in charge of all Development opportunities that Robert Holmes deals with along with sales. Aged 40, he provides succession together with the two existing directors. Nick has always been focused on building client relationships and sales. He built up his own gallery in Chelsea, where he had a loyal following of customers and artists.

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