First-time buyers still better off than tenants

First-time buyers are £742 a year better off than those who rent, according to a new study by Halifax. The annual figures from the Halifax are based on the average monthly buying cost (including mortgage payments) for a first-time-buyer purchasing a three-bedroom property at £6,582, £62 lower than the typical monthly rent – £7,203 annually – paid on the same property. The latest information reconfirms what many of us already know – buying property often makes sound financial sense. This will partly explains why the volume of homebuyers is increasing, with first-time buyer numbers up by an estimated 22 per cent in 2014 with 326,500 of them getting on the ladder, the highest annual total seen since 2007. However, the price difference between buying and renting is narrowing. The price of a typical first-time buyer home increased by 8 per cent in 2014, and although average monthly rents have risen by £28 over the same period, average monthly buying costs increased by £46. This means the difference has narrowed from £80 in 2013 to today’s figure of £62, but nonetheless, the saving is still clear. As an added bonus, buying is now more affordable in all regions in the UK,…