Property News > Renting Is Now Cheaper In Over 50% Of UK Cities

Renting Is Now Cheaper In Over 50% Of UK Cities

For a number of years experts have continued to suggest that buying a home is much cheaper than renting. Mortgage repayments can be almost half that of rental fees in some cities, although recent reports seem to suggest the tide is changing.As part of our study into Renting versus Buying, we found research highlighting that renting is actually now cheaper than mortgage repayments in over half of UK cities, with some cities giving significant savings every month.On average, renting is around £47 per month cheaper currently, with average rent prices hitting £690 compared to a monthly mortgage repayment of £737.That of course varies from city to city with Londoners having to pay 47% extra on mortgage repayments in comparison to renting. The monthly rental fees are around £1,861 in the capital, while if you were looking to by you’d be expected to pay £3,001 per month in mortgage repayments.That’s based on an average sized home, with a 90% loan-to-value mortgage.The South generally saw bigger discrepancies between rent and mortgage payment. In Cambridge, rental fees are around 30% lower than mortgage payments alongside Brighton which offers 27% better value in renting.Reading and Bedford are also among the biggest savers, while further up North, some cities still offer better value in buying. In Glasgow you’ll find the best value, with mortgage repayments 30% cheaper than paying rent, which will set you back £649 per month.Dundee offers similar value, while Bradford, Barnsley and Leeds will generally give you savings of around 20% paying off a mortgage.The news has seen many experts suggest the cost of houses has plateaued, particularly in the South East where the differences are at their highest. This could suggest we eventually see a drop off in people buying, which is sure to change the housing market once again and perhaps realign the prices bringing buying back to a more level playing field.

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