Property buyers win out over renters to the tune of nearly £200,000 over a lifetime, a new study from Barclays has claimed. The total cost of mortgage repayments, maintenance and other costs associated with owning a home comes to £429,000 over 50 years, compared with £623,000 for renters. These figures also do not account for the fact that buyers will own a property outright by the time they have paid off their mortgage.
However, the results vary wildly from region to region. In the south-west of England, where rent is fairly cheap and property prices high, buyers save just £33,863 over 50 years, while their counterparts in London save a massive £396,049.
“The cost of stepping on or moving up the housing ladder can be a big barrier for many, but the long term benefits hugely exceed the initial expense,” said Andy Gray, head of mortgages at Barclays. “Not only will you save money by becoming an owner occupier, but you will also own a substantial asset once your mortgage is paid off, providing financial security for your old age.”