Purchasing a property is on average more than £100 a month cheaper than renting one, according to new figures from the Halifax.

According to the bank, the cost of buying a three bedroom home in the UK stood at £600 per month while renting the same type of property would be 16 per cent higher at £716.

It’s a considerable difference from when the Halifax looked at the market in 2008. Back then the cost of buying was an astounding 29 per cent greater.

In the main this has been driven by mortgage rate dropping to lower than expected levels. Currently the average rate paid by a property buyer stands at 3.63 per cent, compared to 5.75 per cent four years ago.

At the same time, the average cost of renting has risen by nine per cent due to an increased demand for rental properties.

Londoners appear to be ones who would most benefit from buying as currently the cost of renting works out 10.2 per cent higher than the average mortgage repayment, even after the cost of funding a deposit.

Indeed, out of all the regions in the UK only Wales has cheaper rental than purchase figures (£474 opposed to £479).

Martin Ellis, housing economist at Halifax, stated: “The affordability gains for buyers relative to renters in the last three years have been significant.

“The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates. At the same time, rents have risen due to strong demand for rented accommodation.”

It seems that this year may be when many people take the plunge by their first home.

A recent survey conducted by MyIntroducer.com and Virgin Money found that 24.78 per cent of mortgage and financial advisers expected to see more first-time property buyers pass through their doors during 2012.