Scottish homeowners are "more than £1,500 a year better off" than renters

People in Scotland buying their home instead of renting are more than £1,500 a year better off.

This emerged in the latest Halifax buying v renting review.

It found that the average cost of buying a three-bed house north of the border last December was £509 a month, compared to the typical cost of renting such a property at £640 - a difference of £1,574 over the course of a year.

Across the UK, homebuyers are saving the most in Greater London. They have monthly outgoings of £1,390 while those renting have to fork out £1,763 a month - which adds up to an extra £4,475 in a year.

The smallest gap is in Yorkshire and the Humber, where the average monthly buying cost is £520 compared to £550 for renting - an annual saving of just £361.

Closing the gap

Nationally, the Halifax said the gap between the cost of buying and renting is at its lowest in nine years.

In 2017, buyers were saving an average £900 a year compared to renters but the latest figures show this saving was down to £366 last year.

Typical UK housing costs including the mortgage on a three-bed home were £729 a month in December 2018, compared to the average monthly rent of £759 for the same property type.

Russell Galley, managing director at Halifax, said: "The gap between buying and renting is narrowing, primarily driven by reduced first-time buyer prices deposits in some regions and continuing house-price growth, meaning buyers are paying more on their mortgages.

 "With more products available for borrowers, these factors combined have pushed up the price of buying quicker than the price of renting. Meanwhile, the cost of rent, household maintenance and average deposits have remained broadly flat."

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