The average monthly cost of running a three-bedroom house for someone taking their first step on the property ladder stands at £677, which is £110 lower than the typical monthly rent paid on a similar property, according to research undertaken by Halifax.

Cheap mortgage deals have helped to widen the cost gap between buying and renting a home in recent years. Five years ago, the average cost of owning your first property was around £37 a month more expensive than renting, Halifax said.

Buying has become even cheaper compared with renting over the last year, the research found. A year ago, the cost of owning a first-time buyer home was around £93 a month less expensive than renting.

Halifax said that while the typical monthly cost of buying a home has increased by £25 compared with a year ago, typical rental costs have increased at a faster rate and have lifted by £42 a month to now stand at £787 a month on average.

Regionally, buying is most cost-effective compared with renting in London, Wales and the West Midlands, Halifax said. The East Midlands is the only region where potential first-time buyers will still find it cheaper to rent than to buy, it found.