Britain's top town for buying property revealed
Published by Max Salsbury for 24dash.com in Housing and also in Finance
Aberdeen is the most cost-effective town in Britain for buying property compared to renting, research has revealed.
Over a typical seven-year period, the average property owner in the Scottish town can expect to be £99,040 better off compared to the equivalent renter, according to analysis by property website Zoopla.
Zoopla found that it takes buyers in Aberdeen with a 10% deposit just one year of ownership for buying to become more cost effective than renting. The average property price in the town is currently £206,060, with average monthly rents at £1,275.
Meanwhile, London is currently Britain's most renter-friendly location. After seven years, a typical London renter would be £82,412 better off than a buyer with a 10% deposit of an equivalent property. It would take 18 years for a London buyer with a 10% deposit to begin to be financially better off compared to the equivalent renter.
Bournemouth is the country's second most renter-friendly town. With average asking prices of £380,206 and average rents of £1,024, it would take 22 years for a buyer with a 10% deposit to be better off compared to a renter in an equivalent property. After a seven-year period, a typical renter in Bournemouth would be £30,719 better off than a typical buyer with a 10% deposit.
Lawrence Hall of Zoopla said: “Despite taking longer to be better off financially, London remains the holy-grail in terms of property investment. It is much more buyer-friendly outside the capital but with rising average prices and low savings rates, accumulating a deposit has become increasingly difficult. It is important to remember that whilst renters may be better off in the short to medium term in some areas of the country, buyers are making a long-term investment. With most buyers opting for mortgage terms of 25 years, over the long term, buyers are likely to be better off compared to those who choose to rent.”
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