The UK housing market remains hot.  House prices are continuing their upward trend and demand for all types of residences are evident through data each month.  A new set of data from Halifax suggests those searching for a house and are close to giving in to renting, hold tight in the search.  Figures indicate the cost of owning a home is still cheaper than renting.  This is due to mortgage rates which continue to be quite affordable.

This fact relates most to first time buyers who are often caught between buying a home and going all in, even on a property which they are not completely sold on, to avoid having to rent or remain living at home.  The data indicates buying a home has been cheaper to follow through with compared with renting since the year 2009.

The latest report from Halifax states the true reason for the disparity in home ownership compared with renting remains to be the fall in home mortgage rates. 

The report went into detail regarding the fall in mortgage rates, saying: “The significant fall in the monthly cost associated with buying compared to renting has been driven by the decline in the average mortgage rate since 2009. The mortgage rate for a first time buyer has fallen to an average of three per cent from 4.9 per cent in June 2009, helping to reduce the average monthly mortgage payment by £57 (eight per cent).”

Craig McKinlay, mortgage director at Halifax commented on the opportunities open to those attempting to reach the property ladder, saying: “It is clearly encouraging that since 2009 there has been a significant decline in the cost of buying a home for those for those trying to get on the housing ladder. The improvement is due to a combination of lower mortgage rates and rising private rents. In contrast, market conditions for renters have deteriorated as rents have risen over the same period.”