First-time buyers are £742 a year better off than those who rent

First-time buyers in the UK are £742 (9%) a year better off than those who rent, according to new research by Halifax. The average monthly buying cost (including mortgage payments) for a first-time buyer purchasing a three-bedroom property stood at £6582 in December 2014, £62 (or 9%) lower than the typical monthly rent (£7203) paid on the same property type.

Commenting on the findings, Craig McKinlay, mortgage director at Halifax said: "Average homebuying costs are significantly lower than average rental costs, providing first-time buyers with a large financial saving if they can get on the housing ladder. While the timescales associated with raising a sufficient deposit to buy a home present a hurdle to many potential first-time buyers, the significant difference in costs between buying and renting, combined with still low mortgage rates, increased consumer confidence and the Help to Buy scheme, have all been factors driving the substantial rise in first-time buyers over the past two years.

Let's take a look at the key figures...