Sign up to our Editors Choice newsletter now! Click here

Renting costing £1,080 more per year than buying

Accessibility Menu

Menu Search

24dash - The UK's most up-to-date social housing and public sector news website

Renting costing £1,080 more per year than buying


Published by Anonymous for in Housing and also in Finance

York York

Renters are paying £1,080 a year more than those servicing an interest-free mortgage, according to research by property website

The company's analysis of Britain's top 50 towns based on number of households revealed that owning is more cost effective than renting in 90% of locations.

It was found that the average monthly rent on a two-bedroom flat is £668, with the average asking price for such a property currently standing at £138,769.

An interest-only mortgage at 5% a year would cost £578 per month - a weekly saving of £21 compared to renting.

York tops the list of places where renting is currently most expensive compared to buying, with a 76.1% rental premium.

Swansea, Cambridge, Bournemouth, Dundee and Huddersfield were the only places where renting was found to be actually cheaper than buying.

Zoopla's Lawrence Hall said: “The cost of renting continues to balloon as a result of first-time buyers continuing to struggle to get affordable financing. Even for an interest-only mortgage, it’s generally much more cost-effective to buy. Property prices are low by historic standards, and sellers struggling to sell are reducing asking prices, meaning there are still some bargains to be had for those lucky enough to be able to get a mortgage.”


Login and comment using one of your accounts...