First Time Buyers Over £800 Better Off A Year Compared To Renters – What’s The Data Showing?

first time buyer

According to recent research by Halifax, first-time buyers are on average £824 better off a year when compared to renters, dependent upon area. The data shows that the gap between getting on the property ladder and renting has widened in the past 12 months.

Over the past year, the UK has been plunged in and out of lockdown with the ongoing coronavirus pandemic. Despite this, the housing market has been active as ever and data is showing there’s no better time than now to get your first house…

What do we know?

Research released by Halifax in their ‘buying vs renting review’ has shown that the gap between renting and buying has widened in the past year, with first-time buyers currently being a lot better off compared to renters.

Although the average costs of being a first-time buyer has increased by 1%, to £753, over the past 12 months, the average monthly costs of renting have increased by 10% in the same 12-month period, to £821.

Why is this?

As we previously reported, lockdown has caused an increase in rental costs, and the Halifax research shows how the costs have grown disproportionately to buying.

Another factor which could be causing such a difference between first-time buyers and renting, could be the implementation of several government policies to help boost the housing market, with the Stamp Duty Holiday being the main one to grab headlines.

Despite the average first home deposit increasing by £11,000 since the start of the pandemic, the government have also been implementing new policies to help first-time buyers with their deposit, such as the ‘Help to Buy equity loan’ scheme, which means they only need to save up a 5% deposit.

With the current schemes in place, the research shows there’s never been a better time to get yourself onto the housing ladder for the first time.

Where are the biggest savings being made?

For first-time buyers vs renters, it may come as no surprise that the biggest savings to be made are in the capital, where buyers are an average of £4606 a year better off.

Following London, the other areas with the next biggest savings are the South East, East Anglia and Scotland, where first-time buyers are £2578, £2019 and £1848 better off a year, respectively.

The slimmest gap between first-time buyers and renters was in Northern Ireland, where buyers are just £539 a year better off.

The research by Halifax showed there were no areas where renters are better off compared to first time buyers.

Despite this encouraging research, the question looms as to whether this will continue when the Stamp Duty Holiday, and other helpful government policies, come to an end or whether this encouraging data is going to hit a bump in the road…

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Millie is a perfectionist with a passion for property and writing articles. You’ll find her researching the latest housing trends and the newest up and coming areas worth investing in.

About Millie Archer 37 Articles
Millie is a perfectionist with a passion for property and writing articles. You'll find her researching the latest housing trends and the newest up and coming areas worth investing in.

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