According to the bank’s Buying versus Renting Review, the average monthly costs (including mortgage payments) associated with buying a three-bedroom house stood at £522 in December 2016 - £72 lower than the typical monthly rent of £593 paid on the same property type.

This 12% difference is the largest across the country compared to the UK average saving of 7%.

Over the past year the gap between the costs of buying and renting in Scotland has narrowed by £49 per month, the report found.

At the end of 2015, the monthly cost associated with buying was £121 lower than renting (19%, £524 versus £645). This is in contrast to average UK buying costs which, over the last year, have risen by 5%.

According to the bank, the costs associated with a first time buyer purchasing a home in Scotland have been cheaper than renting since 2009, when average buying costs dropped from £756 per month in 2008 to £505.

Graham Blair, mortgage director at Bank of Scotland, said: “This is the eighth year in a row that first time buyers in Scotland are better off buying a property rather than renting. Over this period of time, buying costs haven’t fluctuated much, resulting in the annual saving increasing from £458 to £860.

“While it’s also the more financially attractive option across the UK to buy rather than rent, it’s more affordable in Scotland. Buying here is 12% cheaper than renting, compared to the UK’s 7% cheaper.”

The figures also showed the number of first-time buyers in Scotland reached 23,000 in 2016, staying above the 20,000 mark for the third successive year.

The number of home buyers getting on to the first rung of the property ladder has grown by 87% since 2009.

However, first-time buyer numbers still remain 21% below the immediate pre-crisis peak of 29,200 in 2006.

First-time buyers accounted for 49% of all house purchases made with a mortgage in 2016 - up from 35% at the start of the housing downturn in 2007.

Welcoming the research, chief executive of industry body Homes for Scotland, Nicola Barclay, said: “With these statistics representing the eighth year in a row that FTBs in Scotland are getting a better deal purchasing their own home over renting a property, this is encouraging news for those looking to start their own housing journey and take their first steps onto the ladder.

“Research indicates that the majority of Scots aspire to own their own home, and with buying here 12% cheaper than renting compared to the UK’s 7% average, those looking to invest north of the border are at an advantage.

“These cost savings, taken into consideration with the assistance available from initiatives such as the Scottish Government’s hugely successful Help to Buy (Scotland) shared equity scheme and the other associated benefits offered by the new build market such as low running costs and fewer repairs and maintenance issues than the second hand market, means that those buying new are getting the best deal by far.”

Mr Blair added: “The size of deposit that is often required can represent a substantial hurdle to overcome before realising the potential financial advantages of home-ownership. Whilst deposits can raise the upfront cost of buying, it is also an important form of long-term savings for homeowners, and coupled with rising prices it contributes towards higher housing wealth. This in itself adds to the financial attractiveness of buying.

“While first-time buyer prices are a fifth higher (20%) than in 2009, the number of first-time buyers getting on the housing ladder has grown by 44% over the period. Official Scottish Government schemes, such as Help to Buy and New Supply Shared Equity Scheme, have played a part in helping first-time buyers, as have improving economic conditions.”