Monthly costs for homeowners `14% more affordable than renting`

Average monthly housing costs are around £100 (14%) higher for people renting a property than for homeowners, according to Halifax.

Average monthly costs for homeowners stood at £608 in March, compared with £706 for renters (based on a typical three-bedroom house). But just three years ago, the average monthly cost for a homeowner was 43% higher than it was for tenants.

Halifax said this could be attributed to much lower mortgage rates - with the average rate for a new borrower standing at 3.59% in March, compared with 5.82% three years earlier. This has brought down the average monthly mortgage payment by 39% in that time.

An expert at debt management company Gregory Pennington said: "It`s a well-known saying that money spent on rent is `dead money`, because it`s not an investment like buying a home is - and now it seems being a homeowner is often cheaper, too.

"Having said that, buying a home isn`t always the best option. In the current climate, a reasonable deposit is required to get one of the better deals. Until you`ve saved enough, renting may be a more cost-effective option.

"Then there`s the issue of servicing mortgage debt. The consequences of missing mortgage payments could be severe - so people should only buy a home if they are completely confident they can afford to do so."