A new report recently released has revealed some interesting data regarding home ownership in the UK. The housing market has reached a state of affordability not seen in some time. It is now more affordable to purchase and own a home in many areas compared to renting. The most dominant reason for this is falling property prices, followed by increasing rental fees.

The study revealed that in eight out of every ten cities within the UK, buying would make better financial sense than renting. This is considered to be a temporary condition by many, due to the low interest rates that are still available. There are also some experts who argue that renting might be a better option for some in the long term. Every situation has its own set of circumstances.

Even though it is cost effective to own in many areas, first time buyers are still finding it a challenge to secure a loan on their initial. Strict lending criteria still exists and will for some time.

The report considered an average two bedroom flat rental compared with ownership. In areas like Milton Keynes, rent was a significant 42% higher than owning a property. While there is more to maintenance of a property in ownership, this is a considerable difference.

Nicholas Leeming, business development director representing the company initiating the report, commented on the results, saying: "While buying wins out over renting today, the impact of a possible rise in interest rates cannot be ignored. If interest rates were to increase by 1% and rents were to remain the same, renting would become more cost-effective in 78% of the locations studied."