Time for First Time Buyers to Re-Enter the Market

    LONDON, ENGLAND, October 14, 2009 /24-7PressRelease/ -- Buying is cheaper in every region except London

Average rent outside London is GBP434 per month

Average mortgage is GBP382 per month

Potential first time buyers would be better off buying a property than continuing to rent according to new research from Abbey Mortgages. The only exception to this is those looking to buy in London who would pay more in order to buy a home (including purchase price and mortgage repayments) than to rent.

According to the bank's research 1.61 million Britons said that they were looking to buy in areas of the country other than London and based on today's prices these people would save GBP624 each or a collective GBP1 billion over the next 12 months by doing so.

For this group, the average monthly rent comes to GBP434, while those buying a property with a 25 per cent deposit would currently see a monthly mortgage bill of GBP382 - an average saving of GBP52 per month.

Meanwhile, for the 187,000 people looking to get on the property ladder in London, continued high prices in the capital mean that these people will GBP466.19 worse off each month if they choose to buy as opposed to renting.

Across the country, the research into typical first time buyer flats and terraced properties found that in the last 12 months, average prices have decreased by 9 per cent in the to GBP92,861. This means a first time buyer will need an average deposit of GBP23,215 if they want to buy a property with a 25 per cent deposit.

Prospective buyers in Wales are set to make the biggest monthly saving at GBP90.91, followed by those in the North West GBP87.43 and Yorkshire GBP77.06. Buyers in East Anglia will see only a marginal saving of GBP2.59 each month.

The latest research echoes the findings last time the Rent vs. Buy research was undertaken. In December 2008, Abbey Mortgages found buying to be an average of GBP51 cheaper than renting each month, indicating that falling house prices and low mortgage rates have continued to make housing far more affordable than previously and buying much more attractive.

Nici Audhlam-Gardiner, Director of Abbey Mortgages, commented, "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."

"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."

For more information on Abbey Mortgages, log on to www.abbey.com, telephone 0800 389 9890 or visit your local branch. The Abbey Homebuyer plus is available via mortgage brokers only. To find your local broker, log on to www.unbiased.co.uk for a confidential search.

The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.



Notes to Editors
1) Opinium Research amongst 2000+ UK adults, January 2009
2) Analysis of Land Registry house price data and first time buyers repaying their mortgage at 4.39 per cent over a 25 year term, on a capital and interest repayment mortgage at 75 per cent LTV.


About Us
Santander (SAN.MC, STD.N) is a retail and commercial bank, based in Spain, with operations in more than 40 countries. At the end of 2008, Santander was the largest bank in the euro zone by market capitalization and third in the world by profit. Founded in 1857, Santander had EUR 1,168 billion in managed funds at the end of 2008. Following the acquisition of Sovereign Bancorp of the U.S. in January 2009, Santander has 90 million customers, more than 14,000 branches - more than any other international bank - and over 180,000 employees. It is the largest financial group in Spain and Latin America, with leading positions in the United Kingdom and Portugal and a broad presence in Europe through its Santander Consumer Finance arm. In 2008, Santander registered EUR8,876 million in net attributable profit, an increase of 9% from the previous year excluding capital gains.

In the UK, Santander operates three retail businesses - Abbey, Alliance & Leicester and the savings business of Bradford & Bingley. Together they have over 1300 branches, around 4,500 cash machines and they provide a full range of retail and corporate banking services to 24 million customers.

Abbey, Alliance & Leicester and the savings business of Bradford & Bingley will all become known as Santander by the end of 2010. Abbey and the savings business of Bradford & Bingley will be rebranded from the first quarter of 2010 and Alliance & Leicester will follow later in the year. The move will deliver a significant advantage for customers as they will be able to use any of 1,000 Santander branches from early 2010, rising to over 1,300 by the end of 2010.

The Bradford & Bingley logo is a trade mark of Bradford & Bingley plc and is used under licence.


Media Enquiries
Lara Lipsey Tel: 020 7756 4209 Mobile: 07920 700 732
Siobhan O'Shea Tel: 020 7756 4189

The press office operates from 8.00am to 6.00pm. Outside of these hours please call 0800 5877708.

Website: http://www.abbey.com

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