Tuesday, September 11, 2012
The cost of an interest-only mortgage are lower than the cost of
renting the equivalent property in towns and cities across Britain,
according to the latest research from property website
Zoopla.co.uk.
•
Cost of servicing a mortgage is lower than renting across 88% of
Britain
•
York, Milton Keynes and Derby are most expensive to rent versus
buying
•
Renting makes more financial sense in Bournemouth, Swansea and
Oldham
Average rents for all two bedroom flats available outside London
currently stand at £659 per month while the average asking price
for all two bedroom flats currently for sale outside London is
£139,451. Owning one of these properties and servicing an
interest-only mortgage at a conservative 5% per annum would cost
£581 per month, making renting 13% more expensive and leaving
buyers nearly £1,000 per year better off.
Places where buying beats renting by the biggest margin include
York, Milton Keynes and Derby. At the other end of the spectrum and
bucking the overall trend of buying being better, renting remains
the cheaper option in Bournemouth, Swansea and Oldham.
In London, renting is even more expensive than buying compared to
the rest of the country, with average rents running 17% higher on
average than servicing a mortgage. With current asking prices for
two bedroom flats in the capital at £483,069 and the average rent
on an equivalent property at £2,362 per month, owners in London are
£4,200 per year better off than renters.
article by WARREN LEWIS