Long-term couples who don't co-habit 'waste £5bn a year'

More than one million couples in the UK are squandering £5bn a year by maintaining separate homes, according to research published by Santander Mortgages today. The research found that nearly one in four couples who are engaged or in a long-term relationship pay rent or mortgages on two homes, even though they are spending three nights or more a week together under the same roof. If these couples cohabited, Santander has calculated they would save an average of £4,819 a year. According to the research, the average non-married couple living apart collectively spends around £808 a month on rental and mortgage payments. With the average monthly mortgage repayment for first-time buyers costing only £406, those in two-roof relationships could save themselves £402 a month by moving in together and getting a joint mortgage. But despite the savings that could be made, the increasing cost of property and the continued difficulty in borrowing mortgages without a sizeable deposit have deterred many potential cohabitees. The Halifax reported this week that home values had resumed their upwards march , with prices increasing by 1.1% month-on-month in March. Howard Archer, chief economist at IHS Global Insight , also pointed out that the cost of housing compared to earnings has risen again, producing a ratio of 4.94% in January compared to a low of 4.33% in March 2009, and way above the 1983-2009 average of 4.01%. However, the cost of buying a first home has been made slightly cheaper with the introduction of a two-year stamp duty holiday for first-time buyers spending up to £250,000 on their home. Phil Cliff, director of mortgages at Santander, said: "While some couples may prefer having separate homes, many are only holding back from joint ownership because they are under the impression that it will be too expensive or they won't be able to get a mortgage." Of those questioned by Santander, 5% said they would like to buy jointly but believe it is too difficult to get a mortgage at the moment, while 16% said they would like to buy together but are put off by the costs. Of the UK's non-married yet committed couples, 10% rent separate accommodation, 5% own separate houses or flats, and 8% are in a relationship where one partner owns their own place and the other lives separately in rented accommodation.