It is still better value to buy a property than it is to rent in most areas of the UK, it has been revealed.

According to Abbey Mortgages'' annual Rent Versus Buy Index, although the average amount of money people fork out in rent is steadily approaching the amount homeowners spend on mortgage repayments, on balance it is better to buy a home.

Nici Audhlam-Gardiner, head of mortgages at Abbey, explained: "At the end of the 25 years [spent paying a mortgage] a homeowner actually has a house whereas a renter has nothing.

"In addition, homeowners benefit from any further house prices rises as the value of their equity increases over time."

East Scotland was highlighted as the best place to buy rather than rent, saving the average homeowner 21 per cent, while the north, south and south-east also offer homeowners cost savings.

Ms Audhlam-Gardiner said: "So despite the convergence, we believe that people are still better off owning a property."

However, the firm highlighted that first-time buyers are still finding it tricky to get a foot on the property ladder.

Recent figures from the Council of Mortgage Lenders revealed that first-time buyers are now spending 20.4 per cent of their income making interest payments on their mortgage.