News

The typical monthly cost of buying a three bedroom house in the UK was £600 in December 2011.

Three years ago the average cost of buying was 29% higher than the average rent paid. But homebuying costs have fallen by more than a quarter since 2008, driven by a decline in the average monthly mortgage payment of nearly a third due to the marked fall in mortgage rates and house prices.

The mortgage rate for a new borrower has been reduced to an average of 3.63% in 2011 from 5.75% in 2008, while the average house price has dropped by 11% over the same period.

The average cost of renting has risen by 9% since 2009. Halifax said the higher demand for rental property, driven partly by the difficulties for potential buyers entering the housing market, has pushed up rents.

Over the past year, buying costs have dropped by 5% whilst the typical cost of renting has risen by 5%, continuing the trends seen in 2010.