Buying Is Cheaper than Renting in UK – Halifax

Recent report by Halifax revealed that taking out a mortgage in the UK is cheaper than renting.

The typical mortgage payments for a 3-bedroom property in Great Britain now stands at 600 pounds, while an average rent rate is over 100 pounds more, standing at 716 pounds a month.

On the opinion of Halifax experts, such a dramatic fall in the cost of buying is due to lowered mortgage interest rates and a fall in UK house prices.

Just three years ago, mortgage payments were 29% more than rent rates, making it reasonable for Brits to rent a property.

Commenting on the findings, Martin Ellis, chief economist at Halifax, said: "The affordability gains for buyers relative to renters in the last three years have been significant. The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates. At the same time, rents have risen due to strong demand for rented accommodation."

He, however, highlighted that many people cannot get a mortgage because the deposits required by lenders are too large.