BUYING your home rather than renting it could save you almost £150,000 over 25 years if you live in North or East Yorkshire, according to a new survey.

The research found that the difference in cost between renting and buying was on average 47 per cent for the Yorkshire region.

And York estate agents said today that the state of the local housing market meant that buying was by far the best option.

The survey, carried out by Abbey National, found that a saving of £146,552, or 56 per cent, could be made over 25 years by buying, rather than renting, a three bedroom semi-detached property in North or East Yorkshire.

And by buying a two-bedroom flat, you could save £101,895, or 55 per cent.

A lower percentage saving of 32 per cent, equating to £111,655, can be made by buying a four bedroom detached house.

Bob Webb, senior partner at Churchills estate agents in Gillygate, said that while 15 years ago interest rates were so high that renting was the better option, today the smart money in York was going on a mortgage. Buying a house is a good investment over a long period of time - in York we never had the big drops in property price they saw in the south of England," he said.

"While renting may be more suitable if you are on a low income or only looking for something in the short term, buying a house gives you more security and is much cheaper in the long term.

"My advice would be to buy, if you can afford it."

Miles Bingham, head of mortgage marketing at Abbey National, said: "Our annual survey shows again that once people are in a position to buy, they can make massive savings in the long term. This saving is not the only advantage home ownership can provide; homebuyers have the added benefit of knowing that once the mortgage time is over, they own their home outright rather than simply paying rent into your retirement years."

Mr Bingham said that renting could be a more suitable option for many people, particularly those who require mobility, for instance at the start of their career.

"Rented accommodation offers flexibility to those who are likely to move quite often or are not yet established in their jobs," he said.