Allow Landlords to evict tenants where there are 14 days rent arrears14:34 PM, 1st October 2020
About 3 weeks ago 97
Santander Bank have issued a widely reported press release: “Owning a home is cheaper than renting in all areas of the UK”
The Bullet points of their latest research below:
“The research shows that homeowners could save £2,268 a year if they were able to purchase a property rather than rent. 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. Homeowners could save an average of £189 a month or £2,268 a year compared to renters.”
Of course renting at first glance will appear more expensive if you only compare it against mortgage payments! However how about the cost of:
The above is only like for like between renting and living in your mortgaged property and doesn’t even start to take into account the additional costs for landlords to provide a service.
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.”
The release continues:
“With the average first-time buyer deposit being £51,905, hopeful buyers are opting for alternative methods of saving. One in five (22 per cent) of those wanting to buy would consider selling shares in the property, offering a potential capital return when the property is sold, 38 per cent would consider moving back in with their parents while saving for a deposit and 21 per cent said they will give up alcohol to raise the funds. Other financial products UK adults looking to buy could use to help them get on the property ladder include Santander’s Regular eSaver account which pays up to five per-cent interest, or government funded plans such as Help to Buy and the Starter Home scheme.
Historically, renting has appeared cheaper, especially in areas like London and the South East, where property prices have consistently been high. But since 2010, where the economy saw a re-set, the UK has seen inflation fall and with it mortgage rates have come down significantly, meanwhile rents have steadily crept up.
Prospective first-time buyers in London are set to make the biggest monthly savings by making the switch from renting to property ownership, as 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.”
Table one: Comparison of average rental and mortgage costs by region
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