It is now cheaper to buy than rent in more than half of UK cities, according to property developer Strata Homes.
The property firm used Zoopla data on local rents and property prices to compare the costs with a typical 25-year mortgage at 3.92% on a 75% loan-to-value.
The research found 14 out of 28 UK cities work out cheaper for buyers than renters on a two-bedroom property.
The biggest saving was found in Peterborough where the average property price is £127,075, so the mortgage example would give monthly repayments of £599 a month. In contrast, average monthly rents in the city are £244 more expensive £843.
Glasgow and Coventry also feature at the top of cheaper places to buy than rent, giving savings of £209 and £106 respectively.
Unsurprisingly, London ends up more expensive to buy than rent.
The average property price, according to Zoopla, is £779,157. So a typical mortgage would cost £3,671, while average rents are £1,690 cheaper at £1,981.
Brighton and Bristol also work out more pricey for buyers, £430 and £164 more expensive than renting.
Gemma Smith, sales director at Strata Homes, said: “Once you get over the initial deposit sum, people are surprised at how much you can save in some areas of the UK than to rent.”
It is now cheaper to buy than rent in more than half of UK cities
Two lines later…
The research found 14 out of 28 UK cities.
That’s 50pc unless I’m very stupid indeed.
But, this also means that is cheaper to RENT than buy in half of cities.
I’ll put some speculation on the table and say that it is cheaper to rent in the south, and cheaper to buy in the north (as a rule of thumb).
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Inevitably interest rates will rise and buying will again be more expensive….everywhere.
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