Renters in London are paying an average of 18% more monthly than they would if they owned a property, reveals Halifax’s Buying vs. Renting Review
London renters are paying an average of 18% more monthly than they would if they owned a property, according to a Halifax’s Buying vs. Renting Review, released Friday.
The 18% gap in the capital is the largest divide between monthly rental costs and monthly owning costs logged in the U.K., and equates to £3,727 (US$4,836) annually, the bank and mortgage provider said.
Halifax analysed the costs associated with a mortgage on a three-bedroom home, compared to the average monthly rent of the same property type.
In London, the average cost for a mortgage on a three-bedroom home is £1,378, compared to £1,689 for rent, the report said.
Renters in South East of England pay an average of 17% more monthly than they would if they owned, equating to a yearly cost of £2,475.
In South West England and Scotland, the figure stands at 16%, the report said.
Across the entire U.K. the gap is much smaller, with renters paying 3% more monthly than they would on mortgage payments.
The overall gap between home buying and renting is at its smallest margin for 10 years, but this masks some significant regional variations where homeowners are making some considerable savings on monthly costs, Russell Galley, Halifax’s managing director, said in the report.
While Londoners stand to save the most from home ownership compared to renting, buyers in the South East and South West of England and north of the border in Scotland are also reaping the benefits, he said. Buyers in two-thirds of U.K. regions are saving upwards of £1,000 a year from living in a home they own, with the smallest saving for homeowners in Yorkshire and Humberside at £227.
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