Don’t rent, buy – and you’ll save £1440 a year!

It’s cheaper to buy than to rent by £120 a month – and the gap is widening as rents soar, according to a survey. In its latest review of comparative costs, Halifax revealed that buyers pay less than renters across the UK. The average monthly cost of buying a three bedroom house was £621 in December 2012 – 16% lower than a typical rent of £741. Over a year the saving is £1440.

Buying costs include mortgage, income lost by funding a deposit and repair and insurance costs. The gap between buying and renting grew by £21 a month over the past year. Rents have risen by 4%in the past 12 months – and by 14% since three years ago.

By contrast, in 2008 buying cost £935 but monthly rent was £719. The shift is largely due to drop in house prices and mortgage rates.