As the cost of renting continues to soar, it has now been revealed that it's almost £900 per year cheaper to buy a home than rent one.
In June, the monthly mortgage repayments on a three-bedroom property stood, on average, at £672.
This worked out 10% less, or £73 cheaper per month, than renting the same type of property, according to Halifax.
Over the course of the year the difference amounted to £875.
In sharp contrast, five years ago it cost a whopping £4,200 more per year to buy than rent.
Both lower house prices following the financial crisis of 2007 – 2008 and falling mortgage rates have helped to cut the cost of buying a home.
In fact, Moneyfacts.co.uk research reveals that the average two-year fixed mortgage rate has fallen 1.09% since September 2012, while the average two-year tracker rate has dropped 0.88% over the last year.
When compared to five years ago, meanwhile, Halifax data reveals the average mortgage rate for a new borrower has dropped 2.31%, from 5.88% in June 2008 to 3.57% in June 2013.
At the same time, demand for rented property from those who perhaps either can't afford a deposit on a home or who are not able to get mortgage finance has pushed the average rent up by 13% since June 2010.
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