Renting still more expensive than buying

Renting a property is still more expensive than buying a home, new research from Abbey has revealed, even if the gap is now closing fast.

The financial difference between renting and buying has fallen by some 76 per cent over the past year, the lender's study has found, but it remains £5,811 cheaper to buy rather than rent over a 25-year period.

Even though it is now cheaper to rent than buy in areas such as the north-west of England, Abbey has reminded Britons of the benefits of owner-occupation.

"While the cost of renting and buying is converging, this does not account for the fact that with a repayment mortgage, you end up owning the property when the 25 years are up," said Abbey head of mortgages Nici Audhlam-Gardiner.

"In addition, homeowners benefit from any capital appreciation which might be earned during that period," Ms Audhlam-Gardiner continued.

The latest figures from the Department of Communities and Local Government have revealed that house prices rose by 0.3 per cent in September.

Finance your build or renovation with one of BuildStore's unique finance packages


© Adfero Ltd