To buy a house in the UK is much cheaper than to rent it

A new study of the U.K. housing market showed that to be a buyer of residential property in the UK is much more profitable than renting a house or apartment. The average customer saves around £875 pounds a year. Taken as example the average monthly expenses for the home buyer three bedrooms including the payment of the mortgage, which formed in June 2013 £672 pounds, 10%, or 73% less than the standard rent for a house of the same type and size, which amounted to £745 pounds.

The situation has changed dramatically over the past five years, when more financially attractive was for rent. If to compare with 2008, the monthly cost associated with home buying was £352 , which is 49% higher than the rent that in the year resulted in savings of £4226 lbs. In five years, there has been a significant decrease in expenses for purchase of housing in comparison with rental costs by 37%.

This was facilitated by two factors: the First is the low housing prices. The second more affordable mortgage rates. Average mortgage rate for a new borrower has fallen over five years by 2.31% from 5.88 in June 2008 to 3.57% in June 2013. And the average home price decreased by 13% over the same period. The average rent, in contrast, has risen by 13%, or £ 88 pounds since June 2010.

In the context of the regions the study showed that buying a home is more affordable than renting in all regions except two – Yorkshire and the Humber and the Pulse, where the cost of buying housing is still 1% more expensive than rental costs. Most affordable buying began in Northern Ireland where the typical buyer paying £47 pounds (11 %) less than the average renter. In London the average monthly purchase price of £98 pounds less than the rent.

Despite the improvement in mortgage availability, the number of buyers in the residential property in the UK in June 2013, 44% lower than in June 2008. However, there are signs of improving consumer activity. In 2013, the number of buyers increased by 3% compared to the same period in 2012.

The latest Halifax research shows that the mood of buyers in the housing market has improved markedly in recent months. However, concerns about job security and higher wages remains a major obstacle to market activity. The average initial Deposit of homebuyers has grown to £40628 in June 2013 compared to £38893 in 2012. High upfront fee – the main obstacle for the owners of property buyers in the UK.

® Helen Entree. 23.09.2013 G.