Latest research has shown that people renting in every area of the UK would have lower monthly outgoings if they were to buy a property as a first time buyer than renting one.
The research undertaken by Santander claims that an average of over £2,200 a year could be saved if people were in a position to buy rather than rent.
With the average monthly rental figure in the UK currently being around £912 per household, and monthly mortgage repayments being on average £723 for the average first-time buyer household, homeowners could potentially save around £190 a month in comparison to their peers renting.
Presently the average deposit for a first time buyer is just in excess of £50k, and Santander has said that more creative forms of saving may be required in the future. For example, the survey showed that around 22% of those looking to buy would consider selling shares in the property, in order to gain a potential capital return when they sell the property.
In addition, 38% have said that they would consider moving back in with their parents to help whilst they save for a deposit and 21% said they would quit drinking to help raise the funds.
It has historically been no secret that renting has appeared cheaper in areas such as the south east, and London in particular, where house prices have been consistently higher than the rest of the UK, however since 2010 the fall in inflation has seen mortgage rates fall whilst the comparible price of renting has actually increased.
The biggest savings, the survey claims, are to be made by potential first time buyers in the capital where the average monthly rental costs exceed mortgage repayments by just under £290 a month. an annual saving of around £3,500.
One 77 Mortgages are specialists in providing mortgages for first time buyers. Our team of First Time Buyer Specialists are on hand to discuss the options available. Give them a call today on 01225 667177 and make the move from renting to owning.