Halifax has introduced new data which indicates first time buyers in the UK are more than £740 better off purchasing their own home, compared with renting. The average cost to purchase, including the monthly mortgage payment, was just under £660 in December of last year. This is much less than the typical rent of £720 for a similar property type.

More importantly, the value of a house will always increase in value over time compared with a house which is being rented. On the back side of a house ownership situation then, the house owner will finish up in a more favourable financial position. The house owner will be able to sell the house and pay off what is left to pay for on the cost of the mortgage.

Last year proved quite beneficial for those house owners living in London. The average house ownership cost during the year 2014 was £1,275 per month. In contrast, the average monthly cost to rent a house in the Capital City was £1,387 per month. This is a savings of more than £110 per month. The difference seems negligible, but after it is multiplied by 12 months, it is a sizeable amount of more than £1,300.

Craig McKinlay with Halifax commented on the noticeable difference which exists in ownership monthly cost compared with rental cost, saying: “Average home buying costs are significantly lower than average rental costs, providing first-time buyers with a large financial saving if they can get on the housing ladder.”

McKinlay added: “While the timescales associated with raising a sufficient deposit to buy a home present a hurdle to many potential first time buyers, the significant difference in costs between buying and renting, combined with still low mortgage rates, increased consumer confidence and the Help to Buy scheme, have all been factors driving the substantial rise in first-time buyers over the past two years.”