Home-owning still cheaper than renting overall but difference reduced – study

The average difference of around £500 per year between buying and renting has fallen from a peak in 2016, Halifax said.

The cost of a mortgage on a first home is typically around £42 per month cheaper than renting, according to Halifax (Joe Giddens/PA) (PA Archive)

The cost of a mortgage on a first home is typically around £42 per month cheaper than renting, but the difference has reduced and in some parts of the UK renting may be the less expensive option, analysis suggests.

First-time buyers could typically pay around £971 per month for a three-bedroom home, while renters would potentially be forking out around £1,013, according to calculations by Halifax.

The difference of around £500 per year between buying and renting is down from a peak reached in 2016, when owners were saving £1,567 annually.