Buying your own home in Yorkshire rather than renting could save you £280,000 over 50 years.
The typical cost of purchasing, maintaining and making mortgage payments amounts to £429,000 for a homeowner compared with £623,000 in rent, according to research by Barclays, making an average cost saving of £194,000 for homeowners across the country.
But those who buy in Yorkshire and Humber are even better off.
The average lifetime saving over renting is £280,125 in the region, although Londoners see an even larger benefit saving £396,049. The least profitable place to own your own home over renting is in the South West where renters are £33,863 worse off.
Initially being a tenant is often cheaper than being an owner as mortgage repayments tend to be higher than rental costs, but rents inflate over time.
While homeowners have to find the deposit, stamp duty and solicitor’s fees, plus ongoing costs such as maintenance and insurance, they will own their home after 25 years with the mortgage repaid. The value of the property increases the average of owning over renting to £595,000.
Head of mortgages at Barclays Andy Gray said: “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.
“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.
“Those who choose to rent permanently will have to pay their landlord out of their pension income, while owner-occupiers will enjoy minimal housing costs.”
Miller Homes Yorkshire sales director Steve McElroy also added that new properties will save owners money in the cost of energy.
He said that half the heat lost in a typical home is through walls and the roof and more than 80 per cent of home energy used is for heating and hot water.
However, new homes were six times more energy-efficient than older-style properties, he said.
“New homes are typically very efficient with the latest low energy, high output heating systems, windows and insulation fitted to ensure they remain efficient and cost effective,” said Mr McElroy. “This delivers further cost-saving benefits for home-owners.”