Counting the costs of renting a house in North East

RENTING a property in the North East is almost 500 a year more expensive than buying it, it was revealed yesterday.

Higher demand due to worries over job losses coupled with a short supply of properties has pushed up rental prices.

At the same time, falling mortgage interest rates have made buying a home more affordable.

Paying mortgage interest on the average North East home was 8% cheaper last month than the cost of rent.

The gap was bigger than in any other region of the UK apart from London.

It increased steadily since December 2008 when renting a house was 29% cheaper than buying one nationwide.

Falling mortgage rates made houses more affordable, according to Halifax, which complied the figures.