After the deposit, this how much cheaper home owning is than renting per month

However, in some parts of the UK renting may be the less expensive short-term option, so it pays to check the results in your area (listed below) – especially in the current economic climate.

First-time buyers tend to pay around £971 per month for a three-bedroom home, according to the research from Halifax, while renters spend around £1,013 on a similar set-up.

The difference of around £500 per year between buying and renting has actually reduced slightly over time – back in 2016, home owners were saving £1,567 annually, and in 2021 it was £1,300 cheaper.

Still, the gap is likely to be frustrating for those dealing with dodgy landlords or stuck in the renting system with no sign of escape.

Across the UK, the most notable gap between renting and home owning is in Scotland, where’s a saving of 21% for those on the property ladder.

The East of England was found to be the only region where it was typically more expensive to buy a first home than rent one.

Home-owners there faced paying £90 more each month on average.

Though it varies location to location, the average deposit size across the UK is now 23%, or £64,598.

Rising mortgage rates have been pushing up borrowers’ costs, but the market seems to be beginning to soften, which might take house prices down a notch.

Currently, those wanting to buy in the capital needed an eye-watering deposit of £188,663, which is horrendously unattainable for many of the city’s dwellers.

Kim Kinnaird, mortgages director at Halifax, said: ‘Our latest analysis shows that becoming a home-owner can bring significant savings for people.

‘Of course, making the move from renting to home-ownership can be difficult for many, as raising a sufficient deposit and then finding the right property can be challenging.

‘While a predicted fall in house prices this year will be welcome news for those looking to buy their first home, it doesn’t change the fact that getting on the property ladder remains expensive – a problem that is compounded when rents are high, impacting the ability to save.’

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