In the past year, rental costs have increased by 10 percent while monthly buying costs have dropped by just one percent to £753 each month.
In 2019, the difference between buying and renting on a monthly basis was just one percent.
However, in 2018, there was a monthly cost gap of ten percent between buying and renting.
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Meanwhile, the average mortgage payment has increased.
Buyers in London are on average £4,606 a year better off than those renting in the capital.
In the South East, this drops to £2,578 a year, followed by East Anglia (£2,019) and Scotland (£1,848).
In the East Midlands, homeowners save on average £897 a year.
Andrew Asaam, Mortgages Director, Halifax, said while the stamp duty holiday has helped “drive record levels of mortgage approvals”, the biggest savings each year are in London where house prices are the highest.
During the Covid era, the cost of renting has also increased.
Mr Assam continued: “Raising a deposit is still the biggest challenge for those looking to get on to the property ladder, but the average first home deposit has gone up by another £11,000 since the start of the pandemic.
“We know that first-time buyers will benefit from steps that make finding a deposit more of a reality and the new Help to Buy Mortgage Guarantee scheme could be a gamechanger for those saving hard to take the first step and often paying rent at the same time.
“We have also committed to lending £10billion in 2021 to help people buy their first home this year.”