Saturday 17 February 2018 10:30 am

UK house prices: First-time buyers £27,000 better off than renters – and more than £50,000 more privileged in London

Britons are pouring thousands of pounds in the pockets of landlords each year by renting their home rather than buying it.

UK first-time buyers are an average of £27,000 better off than renters over a mortgage term, Halifax said today.

And in London, the savings are even greater. Homeowners in the capital save an average of £2,191 a year by paying a mortgage rather renting – nearly £55,000 over the same mortgage term.

The national average saving of £27,000 is almost as much as the average deposit, £31,751, Halifax said.

How much could you be saving?

Region	Average monthly buying costs	Average monthly rental costs	% difference	£ difference	£ Annual Savings
North	£444	£529	-16%	-£85	-£1,018
North West	£518	£595	-13%	-£77	-£929
Yorkshire & the Humber	£488	£537	-9%	-£49	-£589
West Midlands	£552	£655	-16%	-£102	-£1,229
East Midlands	£542	£636	-15%	-£94	-£1,134
East Anglia	£709	£784	-10%	-£75	-£899
South East	£991	£1,083	-8%	-£92	-£1,098
Greater London	£1,363	£1,545	-12%	-£183	-£2,191
South West	£719	£862	-17%	-£144	-£1,722
Scotland	£503	£606	-17%	-£103	-£1,240
Wales	£470	£561	-16%	-£92	-£1,100
Northern Ireland	£389	£451	-14%	-£62	-£747
UK	£679	£754	-10%	-£75	-£900

Sources: Halifax, BM Solutions and ONS. Period covered is 12 months to December 2017

“Despite having to put down a sizeable deposit up front, homeowners are overall better off than renters in all parts of the UK. But those who are unable to get onto the property ladder because they can’t raise enough cash are paying more by renting," said Halifax managing director Russell Galley.

The comparatively high price of renting has not always been the case. In 2009 rental bills were cheaper than mortgage ones and in 2008, homeowners were paying an average of £3,063 a year more.

It hasn't always been like this…

Year	Average monthly buying costs	Average monthly rental payment	% difference	£ difference	£ Annual Savings
2008	£871	£616	41%	£255	£3,063
2009	£577	£561	3%	£17	£199
2010	£575	£605	-5%	-£30	-£362
2011	£572	£653	-12%	-£81	-£968
2012	£588	£661	-11%	-£74	-£886
2013	£613	£692	-11%	-£79	-£942
2014	£658	£720	-9%	-£62	-£741
2015	£670	£744	-10%	-£74	-£886
2016	£707	£759	-7%	-£52	-£623
2017	£679	£754	-10%	-£75	-£900

Sources: Halifax, BM Solutions and ONS. 12 months to December 2017. Rental payments are a crude, or simple, average.

“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. Meanwhile, the cost of rent, household maintenance and average deposits have remained broadly flat," said Galley.