Homeowners saving thousands more than renters annually
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Homeowners in the South East are up to 17 per cent better off than renters, a new study has revealed.
According to the latest Halifax Buying vs. Renting Review, the average monthly buying costs in our part of England are £1,008, compared to typical rental costs of £1,214 - an annual difference of £2,475.
The gap is greatest in London, where homeowners save 18 per cent on average (£3,727 annually), followed by the South East, while homeowners in Yorkshire and The Humber save just 3 per cent on average - £235 per year.
The research looks at the housing costs associated with a mortgage on a three-bed home, compared to the average monthly rent of the same property type.
Russell Galley, managing director, Halifax, said: "The overall gap between home buying and renting is at its smallest margin for 10 years, but this masks some significant regional variations where homeowners are making some considerable savings on monthly costs.
"While Londoners stand to save the most from home ownership compared to renting, buyers in the South East and South West of England and north of the border in Scotland are also reaping the benefits. Buyers in two thirds of UK regions are saving upwards of £1,000 a year from living in a home they own, with the smallest saving for homeowners in Yorkshire and Humberside."
UK-wide, homeowners are saving an average of 3 per cent annually (£227) with the gap reducing from 17 per cent year-on-year since 2015, when buyers were saving an average of £1,476 per year or £123 per month.