Research by Santander Mortgages has found that the average monthly rent in the UK is £912 per household, compared with monthly repayments of £723 for the average first-time buyer household.

Prospective first-time buyers in London are set to make the biggest monthly savings by making the switch from renting, as average rents exceed mortgage payments by £3,468 a year.

Comparison of average rental and mortgage costs by region

Santander found that with the average first-time buyer deposit being £51,905, hopeful buyers were opting for alternative methods of saving, with 22% of those wanting to buy considering selling shares in the property, offering a potential capital return when the property is sold.

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A further 38% would consider moving back in with their parents while saving for a deposit and 21% said they would give up alcohol to raise the funds.

Miguel Sard, managing director of mortgages at Santander, said many first-time buyers understandably focused on the challenge of saving for a deposit and wondered how they would afford a property.

“However, it is often assumed that when you purchase a property you will be under greater financial pressure and our research shows the reverse is true.

“Of course, buying a property is a major financial investment with upfront costs to consider, but long term the financial benefits can be significant.

“With annual savings averaging well over £2,000, this can really mount up over time and, of course, once the mortgage is paid off, you have a valuable asset to show for it.

“Getting independent advice and looking for competitive rates is crucial to get the right mortgage to meet potential homeowners individual needs.”