New data from Halifax shows that the average monthly cost to FTBs to own a home in the capital is now £2,241, marginally lower than the monthly cost of renting
Renting is cheaper than buying in most of the UK, but not in London, shows the latest data from Halifax.
New data from the country’s biggest mortgage lender shows that the average monthly cost to first-time buyers (FTBs) to own a home in the capital is now £2,241, marginally lower than the monthly cost of renting.
London was one of only three UK regions where renting remained the costlier option, alongside the South West and Scotland. In some regions, renting was well above £100 cheaper.
The cost of buying a home has soared as mortgage rates rocketed within the last 18 months, while home prices have dropped but not crashed.
The average house price for a FTB in London is now £559,263 per Halifax, down from £586,756 a year ago. Londoners are having to stump up massive deposits in order to get a mortgage on those homes, with the average FTB deposit coming to £190,830, or 34% of the home price.
Kim Kinnaird, mortgages director at Halifax, commented: Our latest analysis shows that, in nearly all regions across the UK, FTBs are better off renting than owning a similar home. In fact, the only regions where it is cheaper to own rather than rent, are the South West, London and Scotland.
Kinnaird added: We know home ownership can offer long term financial and living stability and that is why we believe it is an important step to take. Our customers want to create a secure future, so it is a big priority for us to help people get there. However, higher borrowing costs, besides a lack of available homes to buy, is pushing ownership further out of reach for would-be FTBs in many parts of the country.
