A new survey has found that owing your property is cheaper than renting in every part of the UK.
Santander revealed that, on average, a first-time buyer (FTB) will save £2,268 a year when they pay a mortgage rather than paying rent.
Naturally, the amount you save depends on which part of the UK you live in. Unsurprisingly, the biggest savings were made in London, where the difference between rent and mortgage payments was a staggering £289 per month.
Managing director of mortgages at Santander UK Miguel Sard said that he understands the challenges FTBs face when saving for a deposit. However, he added: “Buying a property is a major financial investment with upfront costs to consider, but long-term the financial benefits can be significant.”
He also pointed out that, in addition to the money you’re saving each month by paying a mortgage instead of rent, you’re also going to own a property at the end of it.
FTBs are also looking at different ways of saving the money they need for a deposit on a home, the research found. 38 per cent said they’d consider moving back in with their parents to save money, while 21 per cent were prepared to give up alcohol to save more towards buying a home.
In London, the market is particularly challenging though. Research from Lloyds Bank recently revealed that FTBs in the capital spend twice as much, on average, as any other FTBs in the UK.
The average price of a first home outside of London is £210,515, whereas in the capital this jumps to £420,132.
Make sure you find top conveyancing solicitors in Epsom to help your property purchase go smoothly, whether you’re an FTB or are moving up the property ladder.