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
In practice how meaningful is the Rent Vs Mortgage argument, if the mortgage is interest only?
I see interest only Mortgages as another version of long term renting without the flexability & convenience.
Also you have to factor in the Landlord maintenace costs that an owner would have to find.
OR
Have I been a Landlord for too long to see the other side!