Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Tue
Sep 16th
Lost Password? Register
Home arrow News arrow Europe arrow Renting is more expensive than buying in many British towns, data suggests

Renting is more expensive than buying in many British towns, data suggests

Tuesday, 11 December 2012
Image
On average renting a home in Britain is at least £1,080 per year more than buying with an interest only mortgage, according to the latest data from property website Zoopla.

Its figures shows that buying is cheaper than renting in 90% of the top 50 towns in Britain with York, Peterborough and Reading the most expensive to rent versus owning.

At the other end of the scale Swansea, Cambridge and Bournemouth are more cost effective to rent property.

It says that the average asking rent for two bedroom flats nationally is currently £668 per month, while the average asking price of equivalent properties currently stands at £138,769.

Based on these prices an interest only mortgage at 5% per annum would cost £578 per month, a saving of £90 per month and leaving renters £1,080 a year worse off compared to owners. Using a 90% LTV interest only mortgage at a typical Best Buy rate of 4.39%, the cost of renting is even higher. The average mortgage on a two bedroom flat would stand at £124,892 with an interest cost of £457 per month, saving the average owner £2,532 a year, not including the cost of the 10% deposit.

York tops the list of places where renting is currently most expensive compared to buying, with a 76.1% rental premium. Peterborough, Reading, Milton Keynes and Northampton all also have significant rental premiums and are much more cost effective places to own rather than rent.

At the other end of the scale, it is currently more cost effective based on asking prices and rents for available properties to rent in Swansea, Cambridge, Bournemouth, Dundee and Huddersfield.

‘The cost of renting continues to balloon as a result of first time buyers continuing to struggle to get affordable financing. Even for an interest only mortgage, it’s generally much more cost effective to buy,’ said Lawrence Hall of Zoopla.

‘Property prices are low by historic standards, and sellers struggling to sell are reducing asking prices, meaning there are still some bargains to be had for those lucky enough to be able to get a mortgage,’ he added.


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here



Europe: Top Headline

Difference between asking and selling prices in Scotland narrowsDifference between asking and selling prices in Scotland narrowsAverage asking prices across Scotland increased by £2,000 and the average selling price increased by over £8,500 to £162,122 in the second quarter of the year, narrowing the gap between the two to less than 1%.



West Tower

West Tower

Car park

West Tower

home rental guide

Limousin Guide

Barratt Homes

Limousin Guide

West Tower

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Company news

Estate and lettings agents UK advert campaign launched

The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) have launched a new regional TV campaign to raise awareness among consumers of the importance of using an NAEA or ARLA licensed agent.

Finance Update

Barclays trims mortgage rates to attract more first time buyers

Barclays has launched new and reduced mortgage rates which it says will support first time buyers and those customers with a smaller deposit.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our Europe property and real estate news feed (RSS)