It’s cheaper to buy a home than rent

Your home may be repossessed if you do not keep up repayments on your mortgage.

Buying a home is cheaper than renting in every region of the UK, according to research from Santander Mortgages.

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 £2,300 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 56per 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 buyers monthly mortgage payments exceed average rents by only £2.

The research found the average price across the country to be £212,610. This means that a buyer with a 21% deposit – the average deposit size for the UK first-time buyer – would require£44,648in order to get on the property ladder.

Miguel Sard managing director of mortgages at Santander UK, said: “People assume that buying a property will put them under greater financial pressure, but often the reverse is true. With annual savings averaging well over £2,000, this can really mount up over time and course once the mortgage is paid off you have a valuable asset to show for it.”