Potential first time buyers would be better off buying a property than continuing to rent according to new research from Abbey Mortgages. The only exception to this is those looking to buy in London who would pay more in order to buy a home (including purchase price and mortgage repayments) than to rent.
According to the bank's research 1.61 million Britons said that they were looking to buy in areas of the country other than London and based on today's prices these people would save GBP 624 each or a collective GBP 1 billion over the next 12 months by doing so.
For this group, the average monthly rent comes to GBP 434, while those buying a property with a 25 per cent deposit would currently see a monthly mortgage bill of GBP 382 - an average saving of GBP 52 per month.
Meanwhile, for the 187,000 people looking to get on the property ladder in London, continued high prices in the capital mean that these people will be GBP 466.19 worse off each month if they choose to buy instead of rent.
Across the country, the research into typical first time buyer flats and terraced properties found that in the last 12 months, average prices have decreased by nine per cent ito GBP 92,861. This means a first time buyer will need an average deposit of GBP 23,215 if they want to buy a property with a 25 per cent deposit.
Prospective buyers in Wales are set to make the biggest monthly saving at GBP 90.91, followed by those in the North West with GBP 87.43 and Yorkshire at GBP 77.06. Buyers in East Anglia will see only a marginal saving of GBP 2.59 each month.
The latest research echoes the findings last time the Rent vs. Buy research was undertaken. In December 2008, Abbey Mortgages found buying to be an average of GBP 51 cheaper than renting each month, indicating that falling house prices and low mortgage rates have continued to make housing far more affordable than previously and buying much more attractive.
Nici Audhlam-Gardiner, director of Abbey Mortgages, said: "Our latest research shows there is hope for first time buyers trying to buy their first home. It's now cheaper in all bar one of the regions to buy rather than rent and shows that saving for that all important deposit is so worthwhile too."
"We remain committed to helping first-time buyers get a foot onto the property ladder and the new Homebuyer Plus range of mortgages, with free legal costs of purchase and free valuation, available in both fixed and tracker deals, is yet another example of this."
The Abbey Homebuyer plus is available via mortgage brokers only.
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