A COMBINATION of plummeting mortgage costs and soaring rents has meantthatbuyinga home is now on average £120 cheaper than renting one across the UK – a gap which has widened in the past year.

According to Halifax, the monthly costs associated with buying a threebedroom house are now 16 per cent lower than renting one – a figure that’s up from 14 per cent in 2011.

Average mortgage costs are £621 a month, compared to a typical monthly rent of £741, says the bank. Over a year this amounts to a healthy saving of £1,140 for homeowners.

On the face of it, buying looks like a smart option for the financially savvy, but is this really the case?

David Gordon, area sales director for Your Move Chris Stonock, gives his opinion.

“What is clear from the report is that mortgage costs have been falling as a result of lower mortgage rates. This is good news for those who can get on to the ladder in the first place – but you need a deposit for that!” said David.

“However, you also need to work out what’s best for you – taking the plunge into the property market or continuing to rent?

“Home ownership has always proved to be a good investment, and despite the state of the market, getting on to the property ladder does make sense while prices are lower.

Once you’ve bought your property you also have much more flexibility in improving it as it’s yours and you can remodel it to suit your own requirements.

“It is true, however, that home ownership can be more expensive.

You obviously have the expense of buying the property in the first place. When this is added to the mortage, insurances etc, you are likely to have more outgoings a month than renting. What you have to remember is that buying a home is an investment.

“Renting a house can also be a good option. If you’re unsure where you want to live, you can move into an area first to try it out before committing long-term. A good landlord will look after the property, so there’s no need for you to spend any of your own money on repairs, improvements or renewals. In addition, rental levels are often lower than mortgage payments, so you may have some spare cash to put aside for a deposit on your own home.

“Renting a property gives you no return, though, so although it may be a good short-term solution, it should perhaps be avoided longterm. Another drawback is that the landlord can serve you notice at any point, which can be quite a trauma – particularly if it comes at an inconvenient time.

“I am unable to give a definitive answer to this question – maybe there isn't a one-size-fits-all answer! It’s all down to individual opinions and circumstance. One thing is certain, though – whether you’re buying or renting, there are plenty of properties to choose from, so enjoy house-hunting!”

For information or advice on selling or letting your home, contact David Gordon and his experienced team on 0191 3862070, or email durham@your-move.co.uk