buying a home in Scotland has become cheaper than renting, according to research by Bank of Scotland.

Analysis by the bank shows the average monthly costs associated with buying a three-bedroom house stood at £505 in June 2012, 7.4% lower than the typical monthly rent of £545 paid on the same property type.

The research also shows monthly mortgage payments have fallen by 45% in the last four years.

In 2008, the average monthly cost for house buyers was £911 – 62% (£350) higher than the average rental figure of £561.

Nitesh Patel, housing economist at the Bank of Scotland, said: "It is clearly encouraging there has been a significant decline in the cost of buying a home for those able to enter the Scottish housing market since 2008.

"The improvement is due to a combination of lower mortgage rates and declining house prices. In contrast, market conditions for renters have deteriorated slightly as rents have risen in the past two years."

The figures also show home buying affordability has increased dramatically in one year. In 2011, average monthly mortgage payments were just 0.5% (£3) lower than renting.

Buying costs have dropped 6% in the last year, while the cost of renting increased by 1%.

Despite this, Mr Patel warned the Scottish property market was still struggling, with a 46% drop in buyers since 2008, from 86,200 in 2008 to 46,200 in 2012.

He said: "Despite the improvement in buyer affordability, housing market conditions in Scotland remain difficult.

"Those getting on the housing ladder still face challenges, most notably in getting a deposit, and this challenge, along with the considerable uncertainty regarding the economic outlook, is still contributing to subdued housing demand. However, once home-buyers are on the housing ladder, their monthly costs are notably lower."

Andrew Smith, a partner with estate agent Strutt & Parker, said he hoped the figures would encourage more people to buy.

He said: "This can only be good news for the housing market and suggests buying a house has reached levels of affordability which have not been seen for many years.

"With long-term mortgage rates at historically low levels and confidence returning to the market, now is a good time to buy.

"The market remains subdued but hopefully this will encourage people who have been holding off buying to re-enter the market."

Clyde Property added that it had seen an increase in inquiries about property sales, which now outnumber those about rental properties.

A spokesman said: "That's the first time that has happened since 2008, and we're seeing properties selling for around 5% below home report value rather than the 10% which was being suggested recently.

"The figures that suggest renting is now 7% more expensive than buying will inevitably reflect the fact people with mortgages are paying substantially less each month due to the historic low interest rates.

"Clyde has also not ruled out the possibility of a further interest rate cut by the Bank of England early next year to stimulate the economy further, which could mean the cost of buying a home and paying for it would fall even further."