Recent research by Santander Mortgages has indicated that now is a good time to buy rather than rent UK property.
The rental price increases over the last few months have made it significantly more expensive to pay the average rent than the average mortgage. This is why now is a favourable time for first-time buyers in the United Kingdom to get on the property ladder.
Santander?s research indicated that buyers could save an average of ?1,040 per year by purchasing property rather than renting. The average rent in the UK is a little more than ?420, while the average mortgage repayments are at ?334.
These averages exclude London though, according to a report by Which4U. People who wish to buy in the capital will have to pay an average of ?359 more than the average rental rate per month in the capital.
In the rest of the UK, the average savings for those who buy rather than rent has increased by 67 per cent since October 2009, from ?52 to ?87 per month.
Phil Cliff ? Santander?s director of mortgage marketing ? noted that, despite the relative degree of caution that kept potential first-time buyers from entering the market, the research results should encourage them to consider property ownership as an option. He said: ?The now average LTV of 75 per cent for first-time-buyers has provided an obstacle in some cases but saving for a deposit is clearly a wise move.?
Mr Cliff also noted that, in addition to lenders? willingness to offer higher LTV products, the Government?s scheme to boost the availability of new homes is a good sign for first-time buyers.
