Home ownership £200,000 cheaper than lifetime of renting, study finds | Money | The Guardian

Home ownership £200,000 cheaper than lifetime of renting, study finds | Money | The Guardian

Young people locked out of home ownership will spend nearly £200,000 extra over a lifetime of renting rather than buying a house, according to research.
Barclays' calculations show that the costs of buying, paying the mortgage on and maintaining an average home valued at about £160,000 today will total £429,000 over 50 years. A tenant would typically pay £623,000 in rent for a similar property over that time.
The gap does not count the potential sale value of the purchased property. The high starting hurdles of deposits, stamp duty and legal fees mean many first-time buyers cannot take advantage.
Andy Gray, head of mortgages at Barclays, 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."