Well according to one of the big names on the high street, yes it is: in a recent survey of the costs of renting as opposed to buying a home, the Halifax claims that buying a home is around £130 per month cheaper than renting an equivalent property. Naturally the Halifax is somewhat biased because they are in the business of selling mortgages (and therefore they want to attract new customers), but according to their report, the average monthly costs on a three bed property are 18% lower than the rent on a similar three bed home.
But, as any good politician knows, figures can always be manipulated to suit the purpose and even if you believe the claims made by the Halifax, the fact remains that taking a step on to the housing ladder is an unrealistic proposition for many families these days. The halcyon days of 95% mortgages are long gone and most lenders are still asking for large deposits before they agree to hand over funds to would-be buyers. That, coupled with the increasingly grim economic outlook in the UK, is hardly a good incentive to commit to a paying a mortgage—if the worst happens and you find yourself out of a job, the lender will repossess and you will end up homeless.
So even if the Halifax would like to convince us that buying is cheaper than renting, renting a home is likely to remain the only affordable option for many families—or at least those who want a long-term roof over their head.
