Potential first time buyers who are currently renting, would be better buying a property according to Abbey, who say it is now cheaper to buy rather than rent.

New research by the mortgage provider has revealed that more than 1.6 million first time buyers could save up to £1billion if they purchased their own home now, which would amount to an average saving of £624 over the next 12 months.

With the exception of London, where the average first time buyer would be paying nearly £500 more than if they were renting, first time buyers can save more than £90 a month through owning their own property as opposed to renting.

Across the country, the research indicates the average price of typical first time buyer flats and terraced houses has fallen in the last 12 months by nine per cent, meaning the average property now costs approximately £90,000.

First time buyer houses in the North West can offer some the some biggest savings, based on the average terraced house costing just under £70,000, a first time buyer with a 25 per cent deposit would be paying around £286 a month, compared to the average rental payments of just below £374, which equates to a monthly saving of around £88.

Wales appears to have the biggest price difference with an average saving of more than £90 for homeowners based on a terraced house costing around £80,000 with a 25 per cent deposit.

Commenting, Nici Audhlam-Gardiner, director of Abbey Mortgages, said: “Our latest research shows there is hope for first time buyers trying to buy their first home. It’s now cheaper in all bar one of the regions to buy rather than rent and shows that saving for that all important deposit is so worthwhile too.”

Explaining how Abbey are working to help first time buyers, Ms Audhlam-Gardiner added: “We remain committed to helping first-time buyers get a foot onto the property ladder and the new Homebuyer Plus range of mortgages, with free legal costs of purchase and free valuation, available in both fixed and tracker deals, is yet another example of this.”

© Fair Investment Company Ltd