The average first-time buyer could save £2,268 a year if they bought a property rather than rented, research from Santander Mortgages has revealed.
The average monthly rent in the UK is currently £912 per household, compared to monthly repayments of £723 for the average first-time buyer household.
It means homeowners could save an average of £189 a month or £2,268 a year compared to renters.
The research also found the average first-time buyer deposit is £51,905.
One in five of those wanting to buy would consider selling shares in the property, 38% would consider moving back in with their parents while saving for a deposit, while 21% said they will give up alcohol to raise the funds.
Potential first-time buyers in London are set to make the biggest monthly savings by making the switch from renting to property ownership.
Indeed, average rents exceed mortgage payments by over £289 a month or £3,468 a year.
First-time buyers in Northern Ireland would see themselves £178 better off per month.
At the other end of the scale are those living in the East of England, where typical first-time buyer monthly mortgage payments exceed average rents by only £43.
Historically, renting has appeared cheaper, especially in areas like London and the South East, where property prices have consistently been high.
However, since 2010, inflation in the UK has fallen and with it mortgage rates have come down significantly, meanwhile rents have steadily crept up.
Miguel Sard, managing director of mortgages at Santander UK said: “Many first-time buyers understandably focus on the challenge of saving for a deposit and wonder how they will afford a property.
“However, it is often assumed that when you purchase a property you will be under greater financial pressure and our research shows the reverse is true.
“Of course, buying a property is a major financial investment with upfront costs to consider, but long-term the financial benefits can be significant.
“With annual savings averaging well over £2,000, this can really mount up over time and of course once the mortgage is paid off you have a valuable asset to show for it.
“Getting independent advice and looking for competitive rates, is crucial to get the right mortgage to meet potential homeowners individual needs.”
Ishaan Malhi, CEO and founder of online mortgage broker Trussle, added: “It can be extremely difficult for anyone renting to get on the property ladder, especially in London where the average person spends virtually half of their net earnings on rent.
“For those who feel as though they’re locked out of home ownership, there are a few options to consider that’ll make it easier to get on the ladder.
“One route is to club together with one or more people to split the cost of the deposit and share the mortgage.
“There are also useful saving tools worth considering, such as a government-backed Help to Buy ISA, which will boost your savings by 25% up to £12,000.
“Once you’re in a position to look for a mortgage, go through a broker with access to most of the market rather than going direct to a lender, to increase your chance of finding the right deal and ultimately save money.”