A new study conducted by British bank Santander has shown that in each region throughout the UK, monthly rental prices are now greater than that of the mortgage repayments, on average.
The research from Santander highlighted that homeowners could potentially save up to £2,268 annually; that is if they had the capability to buy property as opposed to living in rented property.
The price range
The data revealed that the average monthly cost of rent in the UK is currently set at £912 per household, which is £189 more than the average monthly repayments of £723 for a first-time buyer household. This equates to the £2,268 figure we mentioned previously.
Santander UK’s Managing Director of Mortgages, Miguel Sard, said of the findings: “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.
Of course, buying a property is a major financial investment with upfront costs to consider, but long-term the financial benefits can be significant. With annual savings averaging well over £2,000, this can really mount up over time, and of course, once the mortgage is paid off, you have a valuable asset to show for it. Getting independent advice and looking for competitive rates is crucial to get the right mortgage to meet potential homeowners individual needs.”
Property today does not come cheap in most regions, and this is backed up by the fact that the average first-time buyer deposit comes in at a cool £51,9052. As such, potential buyers are seeking alternative approaches towards their saving methods.
A notable 22% of the buying respondents claimed they would deliberate selling shares in the property, offering a potential capital return when the property is sold. Almost 4 in 10 (38%), stated they would look to move back to their family home during the period of saving for a deposit. What’s more, 21% responded that they would quit nights out drinking in order to secure the funds to buy a property.
Renting has traditionally been referred to as the more cost-effective option, particularly in the places like London. However, in the last eight years since 2010, at which point the UK’s economy effectively reset, inflation in the UK has dropped, along with mortgage rates lowering considerably. On the other hand, the cost to rent property has progressively increased.
If you are a new homeowner and you want to use the money you save to put towards expert advice on planning applications, Cornwall-based Martin Perry Associates can help you with all your needs. Our services aren’t restricted to this, so you can look to us for structural engineering works, planning and Building Regulation services, Party Wall services and insurance claims, to name a few.