Buying is now cheaper than renting across 90% of the country, says property website Zoopla.
Tenants pay 13% more on average per year than if they were buying, while renting in London costs almost £6,000, which is £5,959 more each year than owning.
Zoopla, which lists over half a million properties for sale or to rent, analysed the asking prices and rents for all two-bedroom flats currently on the market, comparing the rental cost to the cost of ownership based on servicing an interest-only mortgage at 5% pa.
In London, where the average asking price for two-bedroom flats stands at £430,608, buying still beats renting by a significant margin. The average monthly rent in the capital today is 28% higher than the cost of ownership, leaving renters paying an extra £5,964 annually compared to owners.
See how your location fares: https://www.zoopla.co.uk/rentbuy
Comments
Please, lets not get hot under the coller about a stat from frigging Zoopla of all people. You may aswell ask my cat.
Where you off to Brain; Beachy Head?
I presume you agree wih the article or do you have an opinion, I wonder.
What a shock which fools have already posted! Have a great weekend; I will be sniggering all weekend! Orf to the coast now so slag away!
"while renting in London costs almost £6,000, which is £5,959 more each year than owning."
So you can buy in London for £41!!
Who writes this rubbish?
"...the cost of ownership based on servicing an interest-only mortgage at 5% pa"
Ha ha ha.
Ha ha.
Right-o, show me one lender that would be happy to offer a 100% LTV interest only mortgage.
Ha ha.
Seems that MoneyWeek magazine totally disagree with this:
http://www.moneyweek.com/blog/is-buying-property-cheaper-than-renting-dont-be-so-sure-55628