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Recent insights from Halifax have unveiled an eye-opening trend for those stepping onto the property ladder. The financial landscape for first-time homebuyers is tighter than ever, with the monthly cost of owning a home now standing at £1,231 - a mere £27 less than the cost of renting a similar property. This marks the closest margin between owning and renting since 2019, highlighting a significant shift in the housing market dynamics.
Delving into the specifics, this analysis compares the costs associated with mortgage payments for a three-bedroom house against the average rent for the same type of property. The findings show a stark 24% increase in monthly rental costs to £1,258, alongside a 27% rise in homeownership expenses to £1,231 in 2023. Despite these increases, first-time buyers nationwide still manage to save an annual sum of £319 compared to their renting counterparts.
Location matters when it comes to finding best deal
The picture varies across the UK, with homeownership proving costlier in nine out of twelve regions last year. Renters in the East of England find themselves in the most advantageous position, saving an average of £2,325 annually over first-time buyers. The South East, East Midlands, and Yorkshire & the Humber regions also report considerable yearly savings for renters.
Contrastingly, the South West, London, and Scotland emerge as the areas where purchasing your first home can be more economical than renting, with the South West leading the way in savings at £1,663 annually for homeowners.
As a dedicated estate agent in Wynyard, we understand that whether you're looking to buy, sell, rent, or manage a property, navigating these shifts in the market can be challenging. We offer tailored advice and support to help you make informed decisions that best suit your circumstances.
We can help you, no matter what your property needs are
For homebuyers, we provide insights and assistance to secure your ideal home within your budget. Sellers benefit from our expertise in maximising their property's appeal and value. For tenants and landlords alike, we offer a range of services to ensure a smooth, beneficial relationship.
No matter your property needs in Wynyard and the surrounding areas, we're here to guide you every step of the way.
Kim Kinnaird is the mortgages director at Halifax, and she said: “Our latest analysis shows that, in nearly all regions across the UK, first-time buyers are better off renting than owning a similar home. In fact, the only regions where it’s cheaper to own rather than rent, are the South West, London and Scotland. We know home ownership can offer long-term financial and living stability and that's why we believe it’s an important step to take. Our customers want to create a secure future, so it's a big priority for us to help people get there.”
Kim also said: “However, elevated borrowing costs, alongside a lack of available homes to buy, is pushing ownership further out of reach for would-be first-time buyers in many parts of the country. This is why we’re major participants and big supporters of the Government’s affordable home ownership schemes, such as shared ownership and the mortgage guarantee scheme and we're committed to helping first-time buyers fulfil their dreams of having a place to call their own.”
We are here to help you move in and around Wynyard
If you are looking for help with any matter of the Wynyard property market, it is best to speak to property professionals. No one knows for sure what is going to happen next, so we won’t claim to have all the answers, but the Anthony Jones team is keen to help you as best we can. If you would like to contact us over housing matters, please call us today on 01740 807107.
