Over £400 a year cheaper to buy than rent in Scotland
16 February 2013
The cost of buying a home in Scotland is 6% lower than renting, according to research from Bank of Scotland.
The average monthly costs associated with buying1 a three bedroom house stood at £524 in December 2012; £34 (or 6%) lower than the typical monthly rent of £558 paid on the same property type. Over the course of a year this is equivalent to a saving of £408.
The gap between the costs of buying and renting has widened by £19 per month over the past year.
At the end of 2011, the monthly costs associated with home buying were £15 (3%) lower than renting. Over the past year, buying costs have remained the same, while the cost of renting has increased by 3%.
Buying a house is more affordable than renting in all 12 UK regions.
Buying is most affordable compared to renting in London with the typical homebuyer paying 15% (£193) a month less than the average renter (£1,101 against £1,294). In Yorkshire and the Humber there is virtually no difference, with average monthly buying costs just £1 lower than average monthly rental costs (£482 against £483).
Nitesh Patel, housing economist at Bank of Scotland, commented:
"In the past few years, the sharp decline in home buying costs, combined with an increase in rents, has greatly improved the financial attractiveness of buying a home. This shift has contributed to the increase in the number of house purchases in Scotland in 2012.
"Despite this pick-up, home buying levels are still only half the level at the height of the boom. Concerns over job security and raising a deposit are the main obstacles to people buying their own home. However, it is worth noting that once homebuyers are on the first rung of the ladder, their monthly costs are notably lower."