Buying is 6% cheaper than renting
28 January 2012
Buying a home in Scotland is 6% cheaper than renting, according to research by Bank of Scotland. The typical monthly cost of buying a three bedroom house in Scotland was £510 in December 2011: 6% (or £30) lower than the average monthly rent of £540 paid on the same property type1. The current cost of buying in Scotland, at £510 per month, is 15% lower than the UK average (£600).
This represents a significant turnaround compared with three years ago when the average cost of buying was 47% higher than the average rent paid.
Home buying costs have fallen by more than a quarter (£330) since 2008, driven by a decline in the average monthly mortgage payment of 37% (£250) due to the marked fall in mortgage rates and house prices. The mortgage rate for a new borrower has been reduced to an average of 3.63% in 2011 from 5.75% in 2008, while the average house price has dropped by 17% over the same period3.