Mortgage data has shown that buyers save around £1400 a year compared to renters. The data from Halifax suggests that buyers save £115 a month on average on housing costs if they can afford to get on the property ladder. The survey compared the typical monthly rent for a three-bedroom property in Britain with average buying costs, which include mortgage payments, household maintenance, repairs, minor alterations, insurance and income “lost” from funding a deposit instead of saving. Average buy to let monthly rent increased by 6% to £874.00 between December 2020 and December 2021 while buying costs rose 2% to £759.00 a month.
The mortgage director at Halifax commented that “over the last year we have seen record numbers of buyers entering the market, moving to bigger properties and taking advantage of the stamp duty holiday. However, historic lows for interest rates have got mortgage costs down, compared to rents” if the time is right for you to get onto the property ladder, please do get in touch with our experts within the conveyancing department.