18 Feb

House prices 'cheaper than renting' for first-time buyers

House prices 'cheaper than renting' for first-time buyers

First-time buyers are now better off purchasing than renting in most parts of Britain, a new report has said.

The study by Abbey concluded that those who could afford a 25 per cent deposit would save up to £1,000 a year by buying a home instead of being a tenant, with the greatest difference in monthly payments being in the north-west.

Only in London and East Anglia is it still cheaper to rent, the research concluded, with mortgage payments remaining higher in these locations.

Director of Abbey Mortgages Nici Audhlam-Gardiner commented: "The tide is turning in favour of first-time buyers," adding that those who invest in a home for the long term "could make significant savings".

First-time buyers have seen affordability improve due to recent house price falls.

New statistics from the Department for Communities and Local Government have revealed a 10.2 per cent drop in prices over the course of 2008.

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