Renting cheaper than buying in Wales

For the first time, the cost of owning a property in some parts of the country is higher than renting over a 25-year period.

The annual Rent vs Buy report by Abbey shows that the average cost of buying a property over 25 years, at £379,341, is still less than the average £403,713 outlay for tenants.

But in Wales private tenants would save £27,416, or eight per cent, on the cost of buying property, while in the south-west they would save £21,009, or five per cent, of the cost of buying.

Rising house price inflation has been narrowing the gap between buying and renting each year, and in these areas the balance has finally been tipped in favour of renting – although the homeowner has the advantage that at the end of their mortgage term they will own the property outright.

However, in other areas of the country there are still huge savings to be made from buying a property.

In the east of Scotland, homeowners will save on average £81,157, or 20 per cent, on the cost of renting over a 25-year period, while in the west of Scotland they will save £69,779, also 20 per cent, on the cost of renting.

Across the UK, homebuyers will save on average £24,372 on the cost of renting over a 25-year period.

"In the short-term, a private tenant might be up to £1,000 a year better off than someone who had bought a property in areas such as Wales and the south-west," said Sue Hayes, director of Abbey's product marketing.

"However, in the long-term, paying rent is simply lining landlords' pockets and tenants wouldn't even have a property to show for it."

The report shows that Greater London is the most expensive area to buy, while the south-east is the most expensive area in which to rent.

The west of Scotland is the cheapest area to buy a property, while Northern Ireland is the cheapest area to rent. XXX