Buying cheaper than renting

The average cost associated with buying a two-bedroom flat is around £110 lower than the typical rent paid on an equivalent property, according to research carried out by Halifax.

While lenders are more stingy than ever, the actual cost of getting onto the property ladder is 40 percent less than it was in 2008. In comparison, the price of renting during the same period has fallen by only a fraction of the amount.

Suren Thiru, housing economist at Halifax, said: 'The recent decline in the cost of buying a property for first-time buyers compared to renting has been substantial. and reflects the drop in both mortgage rates and house prices since 2008 as well as a marked increase in the average rent paid over the last year.'

However these favourable conditions may not last, particularly if interest rates rise. Ms Thiru emphasised that the uncertain economy is putting many people off entering the property for the first time. 'While these affordability gains are welcome, conditions in the housing market for those looking to get onto the property ladder remain challenging.' she said.

But Halifax's estimation of the monthly cost of course does not include the deposit, which works out at an average of £27,127 for first -time buyers.

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