Rent? It’s now cheaper to buy a house

IT is now cheaper to own a house in Scotland than it is to rent one. Scottish homeowners are £424 richer each year than if they were renting, new banking research has found. The Bank of Scotland’s Owning vs. Renting Review tracks the cost across the UK of owning and renting a threebedroom property for a typical firsttime buyer. Last year it cost £988 per month to rent a three-bedroom home in Scotland, whereas homeowners paid £953. Bank of Scotland mortgages director Graham Blair said: ‘First-time homeowners in

Scotland are saving hundreds of pounds every year – £424 to be precise – compared to those renting in the country.’

Scotland is one of only three regions of the UK where it is now cheaper for homeowners to buy a house rather than rent one of a similar size.

In London, it was found that homeowners are just marginally better off, saving £148 annually.

Owners in the capital pay £2,241 per month on housing, compared with the £2,253 paid by those who rent.

In the South-West of England, owning a home is significantly cheaper than renting one – saving homeowners £1,663 per year.

Meanwhile, the latest quarterly statistics reveal there has been a significant drop in the number of new homes being built in Scotland.

Around 20,992 homes were completed in 2023, 11 per cent down from the 23,693 houses built the year before.

Mr Blair added: ‘There are quite a few barriers to making the long-term investment in a property, including higher borrowing costs, alongside less homes available to buy.

‘We want as many first-time buyers as possible to secure a place to call their own.’