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  • Writer's pictureSarah Ruivivar

Renting Trumps Buying for First-Timers, Halifax Reports

Image credits: Martin Sepion / Unsplash

According to the latest data from Halifax, renting is now cheaper than buying for first-time buyers in most parts of the UK. Yes, you read that right!


The only exceptions to this new trend are London, the South West, and Scotland, where renting still burns a bigger hole in your pocket. The most significant annual difference is seen in the South West, where homeowners save a whopping £1,663 compared to renters.


In other regions, renting is not just cheaper, it's significantly so. The East of England takes the crown, with renters saving an average of £2,325 annually. The South East (£1,859), East Midlands (£1,741), and Yorkshire & the Humber (£1,731) are not far behind.


This shift is a result of skyrocketing mortgage rates over the last 18 months, while house purchase prices have dipped but not plummeted.


 

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Kim Kinnaird, mortgages director at Halifax, remarks, "Our latest analysis shows that, in nearly all regions across the UK, first-time buyers are better off renting than owning a similar home."


While homeownership offers long-term financial stability, the current elevated borrowing costs and lack of available homes are pushing it out of reach for many potential first-time buyers.


In response, Propertymark, the agents' trade group, calls for increased attention to housebuilding targets and further support for first-time buyers. They urge the UK Government and devolved administrations to introduce tax incentives to attract landlords back to the market, thereby increasing rental supply.


So, if you're a first-time buyer, it might be time to reconsider your options. Renting could be your golden ticket to saving some serious cash! But remember, the property market is as unpredictable as British weather, so keep your eyes peeled for changes. Happy house hunting!



 

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