Potential first-time buyers in every area of the UK would have lower monthly outgoings if they bought a property rather than renting one, new research claims.
The research, by Santander, shows that homeowners could save £2,268 a year if they were able to purchase a property rather than rent.
The average monthly rent in the UK is currently £912 per household, compared to monthly repayments of £723 for the average first-time buyer household. Homeowners could save an average of £189 a month or £2,268 a year compared to renters.
“Many first time buyers understandably focus on the challenge of saving for a deposit and wonder how they will afford a property. However, it is often assumed that when you purchase a property you will be under greater financial pressure and our research shows the reverse is true” says Miguel Sard, managing director of mortgages at Santander UK.
With the average first-time buyer deposit being £51,9052, Santander claims hopeful buyers are opting for alternative methods of saving.
Some 22 per cent of those wanting to buy would consider selling shares in the property, offering a potential capital return when the property is sold.
Another 38 per cent would consider moving back in with their parents while saving for a deposit and 21 per cent said they will give up alcohol to raise the funds.
Historically, renting has appeared cheaper, especially in areas like London and the south east, where property prices have consistently been high.
But since 2010 the UK has seen inflation fall and with it mortgage rates have come down significantly, meanwhile rents have risen slightly.
Prospective first-time buyers in London are set to make the biggest monthly savings by making the switch from renting to property ownership, as average rents exceed mortgage payments by over £289 a month or £3,468 a year.
First-time buyers in Northern Ireland would see themselves £178 better off per month.
At the other end of the scale are those living in the East of England, where typical first-time buyer monthly mortgage payments exceed average rents by only £43.