In its Housing Finance report, it said there were are two crucial factors that made a difference on how to perceive the relative costs of owning versus renting.
It said that, by taking bigger deposits into consideration, buying a property becomes more expensive than renting for two-thirds of first-time buyers on a capital and interest repayment basis.
However, the CML argued that buying is still cheaper than renting for around four-fifths of first-time buyers on an interest-only basis.
“Our most recent data indicates that in 2011 mortgage interest payments typically took up 12.8% of first-time buyer income, the lowest proportion for eight years.
“For those able to buy, we have seen mortgage payments fall significantly but this means that high deposits are currently the biggest hurdle for would-be first-time buyers,” the report said.
For the UK as a whole, average mortgage monthly payments on a repayment basis are £176 a month more expensive than renting, said the CML.
However, monthly rents are also £176 a month more expensive than average interest-only payments.
The CML said this demonstrated an equilibrium between the costs of renting and home-ownership that does not make one or the other the clear winner in the monthly affordability stakes.
CML director general Paul Smee said: “When you look at the monthly costs of buying and renting, it seems to be six of one and half a dozen of the other.
“Most people aspire to home-ownership and value the security and control it can confer. But others will say that the flexibility of the rented sector should not be under-estimated either.
“In the end, deciding whether and when to buy is a personal decision. It should be reassuring to people to see that, on a monthly basis, the tenures appear to be broadly neutral in terms of the costs they impose.”
In January, research from Halifax showed that buying a home in the UK is 16% or £116 a month cheaper than renting, while LSL Property Services revealed that private rents rose by 4% in 2011 and increased a further 0.1% in January to £712 per month.
