Buying Over Renting Best Long-Term Cost Option

People who decide to buy rather than rent a property could save an average of almost £25,000 over 25 years, according to new figures.

Research from high street bank Abbey found the cost of purchasing and maintaining a home for over 25 years totals £379,341 compared with £403,713 for renting over the same period.

Abbey said the gap between renting and buying had narrowed each year with home price inflation pushing up the cost of getting on to the property ladder.

"In the short term, a private tenant might be up to £1,000 a year better off than someone who had bought a property in areas such as Wales and the South West. However, in the long term, paying rent is simply lining landlords' pockets and tenants wouldn't even have a property to show for it," said Sue Hayes from Abbey.

"Aspirations for home-ownership in the UK remain high, which is why mortgage lenders must take a flexible view to affordability. First-time buyers might find it difficult to get on the property ladder, but they are better off in the market than out."

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