Home loan cheaper than renting
A new study has revealed that it is £37,000 cheaper to buy a property than to rent.
The research, commissioned by high street bank Abbey, found that buying an average property over a 25-year period now costs £326,849, while renting one would cost people 11 per cent more at £364,499.
Despite this difference, the gap between buying and renting is closing after the recent increases in house prices.
The difference between buying and renting a home is now at its lowest since the group first began doing the research 10 years ago.
In 2004, buying was 16 per cent or £49,797 cheaper than renting.
Abbey has said that a 12.6 rise in house prices combined with a 0.75 per cent jump in interest has made it more expensive for people to buy their own home.
London remains the most expensive region for both buying and renting a property. It is still four per cent or £25,100 cheaper to buy a property in London than to rent one over a 25-year period.
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