In December 2012 a three bedroom house cost £621 per month or £120 (or 16%) lower than the typical monthly rent of £741.
Over the course of a year this is equivalent to a saving of £1,440.
Martin Ellis, housing economist at Halifax, said: "The sharp decline in home buying costs over the past few years, combined with a significant increase in rents, has greatly improved the financial attractiveness of buying a home.
“This shift has contributed to the increase in the numbers of house purchases, which reached a five year high in 2012.
"Despite this pick-up, home buying levels remains well below the levels at the height of the market.”
The lower costs of buying compared with renting are likely to have contributed to the 6% increase in the number of house sales in 2012. Nonetheless, whilst sales last year were the highest in the past five years, the total (932,000) was still 42% lower than in 2007 (1,619,000).
