Homeowners in the North East who own their own homes are better off than those than rent in the region, according to new figures.
Data released by the Halifax show that homeowners in the area are £61 per month better off than renters, with the region going out national trends.
According to the figures, the average North Easterner spends £520 a month to rent a house, in comparison to £459 for those who own one. This represents a difference of 12%.
Only Scotland, the South West and London recorded larger differences within the UK. Just one year ago, the difference was just £8 per month, a difference of only 2%.
In Britain, first-time buyers’ advantage over renters has slowed during the last 12 months. Summer 2014 saw renters paying £1018 on average more than buyers. Now, this figure is down to £670.
Separate research from the Guardian has also shown the North East to be the most affordable place to live in Britain The report shows that Londoners spend an average of 12.2 times their income on property, in comparison to just 6.1 times in the North East.
North East homeowners better off than renters
Ajay Jagota, of North East sales and lettings firm KIS, believes the figures do not tell the entire story. Jagota said that, ‘the North East is historically the most inexpensive place to buy a house in the UK-and this research shows it to be the most affordable too. Because of this, buying has always been comparatively cost-effective compared to renting. When you add to that recent developments like reductions in Stamp Tax, low mortgage rates and the government’s Help to Buy scheme lowering the cost of deposits, it’s really no surprise at all to see the cost of buying a property falling.’
‘These figures don’t take away from the fact that the North East is undoubtedly the most cost-effective place to both buy and rent in the UK. Halifax’s research shows that North East buying costs are 32% below the national average, and renting costs 28% lower.There’s no reason at all to be put off renting. KIS research has shown that North East rents have remained the same for almost 18 months. House prices meanwhile have risen by over 5% in the last two months. Then of course there’s the unexpected costs of home ownership these figures don’t include – broken down boilers, insurance, you name it.’
Mr Jagota concluded by saying, ‘when charities like Shelter talk about 17,000 tenants being bullied by their landlords, they forget to mention that that’s out of an overall total of over 9,000,000 renters. Renting isn’t just the right choice for many people, it’s can be a very cost-effective one too.’