Owning a Home Almost a Fifth Cheaper than Renting


February 2020

Owning a Home Almost a Fifth Cheaper than Renting

Homeowners are almost a fifth better off each month than people in the private rental sector, according to a report.

Recent figures from Halifax has revealed that homeowners are at least 10% better off than renters each month in all but one region of the UK. The only exception is in Yorkshire and the Humber, where homeowners are just 3% better off than renters.

Homeowners in London see the largest savings compared to renters at an average of 18%, or £3,727 a year. Homeowners in the South East and South West of England also make considerable savings over renters, at 17% and 16% respectively.

“The overall gap between home buying and renting is at its smallest margin for 10 years, but this masks some significant regional variations where homeowners are making some considerable savings on monthly costs,” said Russell Galley, managing director of Halifax.

“While Londoners stand to save the most from home ownership compared to renting, buyers in the South East and South West of England and north of the border in Scotland are also reaping the benefits.

“Buyers in two thirds of UK regions are savings upwards of £1,000 a year from living in a home they own, with the smallest saving for homeowners in Yorkshire and Humberside at £227.”

Halifax is owned by Lloyds Banking Group, the largest mortgage lender in the UK.

Below is a full list of the differences in average cost for homeowners and renters in each region of the UK:

Region Average Monthly Cost for Homeowners Average Monthly Cost for Renters Difference Average monthly savings for Homeowners Average annual savings for Homeowners
London £1,378 £1,689 18% £311 £3,727
South East £1,008 £1,214 17% £206 £2,475
South West £765 £915 16% £150 £1,796
East Anglia £736 £853 14% £117 £1,400
Scotland £545 £647 16% £102 £1,224
Wales £536 £634 15% £98 £1,177
North West £568 £665 15% £98 £1,174
West Midlands £621 £711 13% £90 £1,076
East Midlands £620 £686 10% £65 £784
North East £468 £530 12% £62 £747
Northern Ireland £437 £489 11% £52 £621
Yorkshire and the Humber £544 £564 3% £20 £235