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Cheaper to buy then rent, says Halifax (26 August 2014)

Date: 26/08/2014
Duncan Lewis, Legal News Solicitors, Cheaper to buy then rent, says Halifax

New figures from the Halifax show that buying a house with a mortgage saves an average of £1,300 a year compared with paying monthly rent.

The Halifax says that on an average three-bed house, first-time buyers will pay a mortgage of £677 per month, compared with £787 per month in rent for a similar property.

However, the figures are based on current mortgage interest rates, which have given homeowners historically low repayment rates on their mortgage.

When the Bank of England decides to raise interest rates, homeowners will end up paying more for their monthly mortgage repayments, bringing them into line with rental tenants.

Some rental tenants may also end up paying more for their rented homes, however, if landlords with buy-to-let mortgages pass on any increases in mortgage repayments to their tenants.

The Halifax report is based on figures for the year ending June 2014. The report says that it is currently cheaper to buy a property than rent in all areas of England, except East Anglia and the East Midlands, where property prices have not risen as quickly as in other areas of the country.

The Halifax report warns that once the current base rate of 0.5% rises to 1.5%, it will once again be cheaper to rent than buy, however.

Duncan Lewis Housing Solicitors

Duncan Lewis housing solicitors can advise first-time buyers and home owners on a range of housing matters, including debt management and mortgage repossession.

Duncan Lewis housing solicitors can offer competitive rates on conveyancing services to homebuyers.

Duncan Lewis is also one of the UK’s leading providers of Legal Aid services and can advise rental tenants and public sector housing tenants on:

• Disrepair of rental property
• Housing benefit
• Housing possession
• Landlord & Tenant disputes
• Local Authority housing
• Unlawful eviction.

For expert legal help with housing law call Duncan Lewis housing solicitors on 020 7923 4020.

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