Posts with tag: cost of buying a home

Buying a home using a mortgage is cheaper than monthly rent payments in over one third of British cities, according to recent research from Zoopla.

It reports that buying is most cost-effective in the north, with homeowners in Glasgow over £100 better off per month than if they rented.

However, in the south, it is cheaper to rent than buy.

Zoopla states that as a national average, renters pay £58 less a month than buyers with a mortgage.

The property portal’s study compares the cost of renting with buying a two-bedroom home.

In London, the typical rental property costs £2,218 per month, compared with an average monthly mortgage repayment of £3,302.

Meanwhile, in Hull, buyers pay an average monthly repayment of £397, while renters pay £452 a month.

The top ten areas where renting is cheaper than buying are:

1. London
2. Reading
3. Cambridge
4. Brighton
5. Aberdeen
6. Bristol
7. Norwich
8. York
9. Bedford
10. Southampton

The top ten locations where buying is cheaper than renting are:

1. Glasgow
2. Dundee
3. Birmingham
4. Hull
5. Manchester
6. Coventry
7. Edinburgh
8. Rotherham
9. Bradford
10. Sheffield

To calculate the averages, Zoopla used a 25-year mortgage with repayments and a fixed interest rate at the current average best rate of 4.5%, based on 90% loan-to-value.