Renting cheaper than buying in half of British cities
Renting a property is now cheaper than buying in over half (54%) of British cities, according to Zoopla.
The property portal researched the monthly cost of renting a two-bedroomed home, compared to servicing a mortgage, in Britain’s 50 biggest cities. It discovered that the proportion of locations where it is now cheaper to rent a home has increased by 14% since last October, when it was more cost effective to buy in 60% of British cities.
London better for renters
Londoners fare best when it comes to renting, with the average monthly rental cost coming in at 47% (£1,861) less than the average mortgage repayment (£3,001 a month).
Cambridge took second place, where the average monthly rent is 30% (£389) less than a mortgage, followed by seaside town Brighton, where renting is 27% (£377) cheaper.
At the other end of the scale, the Scottish cities of Glasgow and Dundee top the list of locations where monthly mortgage repayments are cheaper than rent. Glasgow comes in first place with the average mortgage repayment currently 31% (£174) cheaper than monthly rent, followed by Dundee, where it costs 29% less (£549) per month to service a typical mortgage.
Lawrence Hall, spokesperson for Zoopla, said: “These figures are encouraging for those who are currently renting and perhaps looking to save as much as they possibly can to get on the property ladder.
“It is important to remember that whilst renters may be better off in the short to medium term in some areas of the country, buying a property is a long-term investment. With most buyers opting for mortgage terms of 25 years, buyers are likely to be better off overall compared to those who choose to rent.”