On average, it is 30% cheaper to buy a property than rent over a 25-year period, according to research from Abbey National.
But despite homeowners saving more money than those renting, Abbey said this figure has fallen from 57% last year. This is a result of surging property prices.
Bridget Walsh, head of mortgage marketing at Abbey National, said: ‘Although we have seen an extremely buoyant housing market over the last year, our research has again shown the real benefits of buying as a opposed to renting. It makes financial sense to buy rather than rent a property in the UK, if you are in a position to do so.
‘The average monthly rent on a UK property is £677 and this sum would get an eligible homebuyer with the relevant deposit a £125,000 loan at our current 4.25% discounted rate mortgage. The difference is that while one is paying for their home, the other is lining their landlord’s pockets.’
The research also found the North West has the largest average saving in cash terms at just over £151,500. The lowest savings were in the South West with £60,121.