A new survey has indicated that buying a home cost less than renting in more than half of the cities in the UK
Research from Strata Homes has investigated where monthly mortgage repayments work out cheaper than rent.
Cost-effective
Data from the report indicates that buying is more cost-effective in Doncaster, Hull and Bradford. London, Brighton, Bristol and Swansea however were found to be the only cities where it is more cost effective to rent.
Utilising available statistics, Strata Homes calculated the average sale price of two-bedroom properties in Britain. From there, the firm worked out the average monthly mortgage repayments, in comparison to the average monthly rental fees.
Doncaster, Hull and Bradford were found to be the three cheapest areas in the UK in which to purchase a house. Glasgow too was found to be cheap, with mortgage repayments from just £520 for a two-bedroom property, in comparison to the £729 average rent per month.
Is buying or renting more affordable?
Differences
In Peterborough, a first-time buyer using the Help to Buy scheme would save £344 per month paying off a standard mortgage, as opposed to renting a similar property. Meanwhile in Manchester, a two bedroom house would cost an average of £762 per month to rent, but would cost just £676 per month in mortgage repayments.
Those renting a house in Birmingham were found to be paying just £2 less than homeowners in the city.
Gemma Smith, sales director at Strata Homes, noted, ‘once you get over the initial deposit sum, people are surprised at how much you can save in some areas of the UK than to rent. Thanks to the Government’s Help to Buy scheme, it is easier than ever to get onto the property ladder with over 3,000 accounts opened so far this year.’[1]
An interactive map of where buying and renting costs differ across the UK can be found on the Strata Homes website.
[1] http://www.propertywire.com/news/europe/uk-rent-buy-cities-2016050411875.html