According to Bank of Scotland, Scottish first-time buyers could have saved around £1,800 on housing costs last year when compared to renters in similar properties.
The Bank of Scotland Buying vs Renting Review compares the housing costs associated with a three-bed mortgage to the average monthly rent for the same property type.
The annual cost differential between purchasing and renting is now £1,236 (213%) bigger than it was ten years ago. However, the current annual difference (£1,817) is not as large as it was in 2020, when ownership costs were £1,927 less than renting costs.
Graham Blair, Mortgages Director, Bank of Scotland, said: “Over the last year, we have seen record number of buyers entering the market, moving to bigger properties and taking advantage of the stamp duty holiday. However, historic lows for interest rates have kept mortgage costs down, compared to rents. The £35,000 average deposit we see in our data may be an unimaginable sum to potential first-time buyers, but it’s much higher than many need to get a foot on their housing ladder. Deposits from 5% are available and, based on the average house price, would mean putting down a £6,800 deposit – significantly less than the average.”
