A report from Santander says that potential first-time buyers would have lower monthly outgoings if they bought a property than they do renting.
In every region of the UK, average monthly rental prices now surpass those for the average mortgage repayment.
According to the bank’s research, would-be buyers could save themselves £2,300 a year if they were able to purchase their own property. The average monthly rent in the UK is currently £995 per household compared to monthly repayments of £805 for the average first-time buyer household, meaning homeowners could save an average of £190 a month or £2,305 a year.
Prospective first-time buyers in the South West are set to make the biggest monthly savings by making the switch from renting to property ownership as average monthly rents exceed mortgage payments by over £192. First-time buyers in London, where rental prices are 56 per cent higher than the UK average, would see themselves £179 better off per month. At the other end of the scale are those living in the East of England, where typical first-time buyer monthly mortgage payments exceed average rents by only £2.