PygottandCrone

It’s Cheaper To Buy Than Rent In 98% Of Britain

 
According to recent research, renters throughout the UK could save £1,600 a year on average if they were to buy a home instead of renting one.

A new study has looked into the 50 largest cities in the country to find out how rental and mortgage payments compare.

Out of the 50 cities that were used in the study, London was revealed to be the only city in which renting is the more affordable option.

The research was based on an 85% loan-to-value mortgage and the average asking price, which is just short of £150k.

Average mortgage payments in this price range were found to be £564 per month, whereas monthly rental payments stood at £700.47, almost £150 more than paying a mortgage.

There have been indications throughout 2017 of further increases to the average rental rates, with changes to tax regulations and an increase in stamp duty being passed on to tenants to ease the cost on landlords.

The study showed that Glasgow was the city with the largest margin when comparing renting to owning, showing a huge 57% drop in monthly payments, for those who chose to own instead of rent.

Similar figures were seen in Bradford and Dundee, with renters paying a 53% and 52% premium respectively.

London was the only place where renting was the more suitable option for those on a budget, with homeowners in the capital paying just over a 15% premium in comparison to renters.

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