Buyers better off than tenants

Homebuyers are better off financially than tenants over a 25-year period.

That is according to new research by Abbey, which shows that the average homebuyer will be £5,811 richer once that period of time has passed.

People in east Scotland and the north of England are most likely to see the benefit of buying rather than renting, while those in Northern Ireland and Wales are actually better off as tenants.

However, in the UK as a whole, it makes financial sense to buy a property rather than rent one but the gap between the two is closing.

Just 12 months ago, buyers were said to be £24,000 better off than those who rent but rising interest rates have eaten away at that figure.

Despite this, Abbey's head of mortgages points out that there are long-term benefits of investing in a house.

"While on a month-to-month basis in some areas it is cheaper to rent rather than buy, at the end of the 25 years a homeowner actually has a house whereas a renter has nothing," said Nici Audhlam-Gardiner from the firm.

"In addition, homeowners benefit from any further house prices rises as the value of their equity increases over time," she added.

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