The typical monthly cost of buying a three bedroom house in the UK was £600 in December 2011, 16% lower than the average monthly rent of £716 paid on the same type of property.
That contrasts with the peak of the property market in 2008, when a mortgage on the typical home cost around 29% more than renting.
Halifax said that home buying costs have fallen by more than a quarter or around £330 since 2008, driven by a decline in the average monthly mortgage payment of nearly £240 due to the marked fall in mortgage rates and house prices.
The mortgage rate for a new borrower has been reduced to an average of 3.63% in 2011 from 5.75% in 2008, while the average house price has dropped by 11% over the same period.
Meanwhile, the average cost of renting has risen by 9% since 2009.
Martin Ellis, housing economist at Halifax said that despite the improvement in the relative affordability of buying a house, the number of purchasers has continued to fall.
“This has been down to the ongoing challenges in raising a deposit and the considerable uncertainty over the prospects for the UK economy, which have severely constrained housing demand.”
Halifax estimates that there were around 510,000 home purchases with a mortgage in 2011, the lowest annual total since 1974 and 6% lower than in 2010.
It added that higher costs related to moving home such as Stamp Duty and estate agency fees have also added to the overall cost of home buying.
