Buying a home instead of renting is saves you loads of money £££ $$$$

New research claims that the average property owner could save £325,000 over a 30 year period when compared to renting. This figure does not even take into consideration any possible house price increases.

At the end of the 30-year period, buying would also give the homeowner £218,800 in equity from paying off their initial 95% loan-to-value mortgage of that amount.

You save money buying your home

But the claimed savings depend on interest rates on home loans remaining at the historically low-levels that they are at now.

It should be noted that the research, factored in rent starting at the current national average of £11,292 a year and rising by an annual 2% .

The research also included the costs of buying a home such as purchase costs, maintenance and buildings insurance and works on the basis that the buyer starts with a 5 per cent deposit mortgage.

The research claimed that home loan interest rates would have to be in excess of 11.5% throughout the life of a loan before owning and renting produced equal expected financial returns.

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