According to the latest figures, the gap between the cost of renting and owning a property in the UK is actually closing. It’s now just 3% cheaper to own rather than rent across the country as a whole, compared to 10% cheaper a year ago.
However, in London – where it’s notoriously difficult to find somewhere affordable to live – the gap remains much wider at 18%. According to Halifax, which compiled the latest figures, this equates to a massive saving of around £3,750 a year.
“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,” said Halifax’s Managing Director Russell Galley.
“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.”
The gap between the cost of renting and owning a property across the UK as a whole has been closing since 2015, when owning was 17% cheaper. But if you look back a little further to 2009, it was actually slighter cheaper to rent than own.
This is a far cry from the current situation, where “buyers in two thirds of UK regions are saving upwards of £1,000 a year from living in a home they own” according to Halifax’s Russell Galley.
Last year, hundreds of women living in many different parts of the UK told us how much of their salary goes on rent. The results varied dramatically from just over 10% of their monthly salary to an eye-watering 50%.
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