Buying ‘cheaper than renting’

Buying a home remains cheaper than renting, the National Federation of Property Professionals has stated.

Chairman of the organisation Mark Hayward noted that the country has essentially got two very different markets at present, with one for London and the south-east and one for the rest of the country – noting that in the latter case there are "some very good deals to be had".

He added: "At the moment it is cheaper to buy than it is to rent. If you buy, then you will have something with capital value at the end, but if you rent then you will have nothing but expenditure."

However, enjoying the benefits of buying is something many Britons have been unable to do as getting on the property ladder has proved difficult.

A shortage of homes and restricted lending have been part of the problem, while since the onset of the credit crunch in 2007 the average deposit size has increased.

But managing to save for these is something many people will find tough if they have significant debts, as repaying these uses up cash that might otherwise be put into savings.

Those who are struggling to save because of this might benefit from seeking debt help to work out ways of managing their money better.

Mr Hayward also remarked that while renting offers people flexibility over where they live, it can also hold them back from saving for mortgage deposits due to the impact higher demand for rented property has had on rents.

One group whose debt could be preventing them from buying is the current generation of students.

A poll by AIC has found a fifth of parents of students expect their children to be in debt for 20 years after graduation, while 54 per cent of students said they expect to be owing at least £20,000.

Posted by Paul Thacker