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.
ADNFCR-1222-ID-19033415-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.