Much cheaper to buy than rent claims Halifax

The Halifax claims that the cost of renting a three bedroom home is now £769, some 16 per cent more than the mortgage and associated costs if the same house was owned.

This is the largest rent-v-own' difference since 2009. The gap is being driven by average monthly rents increasing by over £100 since 2009 while average monthly ownership costs have remained relatively unchanged over the same period, thanks to the unprecedented - and possibly soon-to-end - low costs of borrowing.

There are, of course, significant regional variations. Owning a home is most affordable compared to renting in London with the typical buyer paying £188 a month less than the average renter (£1,196 against £1,384).

On the other hand in the West Midlands and East Anglia the difference is marginal with average monthly buying costs just £6 lower than average monthly rental costs (£553 against £559 and £633 against £640 respectively).

The pro-ownership' findings do not take into account the deposit required by buyers - a long-term factor which forces many people to rent rather than purchase.

The Halifax figures are based on average rental payments for a three bedroom house over 12 months to December 2013; the purchase figures include not only mortgage costs for a similar property, but allowance for household maintenance, repair, minor alterations and insurance costs, too.