First-time buyers in Yorkshire saving more than £800 a year compared to renting, Halifax analysis suggests

Halifax said the cost gap between being on the property ladder and renting has widened over the past year.

Its “buying versus renting” review found that average monthly rental costs have increased by 10 per cent to £821 in the past year, while the average monthly costs of being a first-time buyer home-owner have increased by one per cent to £753 during the same period.

This adds up to a difference of more than £800 over a year.

Buyers in London are on average £4,606 a year better off than those renting, the research found. The slimmest gap between buying and renting is in Northern Ireland, where buyers were £539 a year typically better off than renters.

In Yorkshire the average monthly buying cost is £557, compared with £628 for renting. This means the average saving for buyers is £863.

First-time buyers still need to find a £58,986 deposit on average to put down, the research found.

But, if they can find the deposit required to get on the property ladder, low interest rates have meant monthly mortgage payments have increased more slowly than rents, Halifax said.

Andrew Asaam, mortgages director, Halifax, said the average first home deposit has gone up by £11,000 since the start of the coronavirus pandemic.

He said a new Government-backed five per cent deposit mortgage guarantee scheme, set to launch in April, could be a “gamechanger” for those saving hard to buy a home and often paying rent at the same time.

The review was based on the typical costs of buying or renting a three-bedroom property.