According to new data, renting a home is the cheaper option when compared to buying one in 54% of British cities

Recent research from property website Zoopla looked into the monthly cost of the average rental payments and mortgage payments for a 2 bedroom home in 50 of Britain’s largest cities.

The findings of this research revealed that on average, renting is £47 cheaper than buying with the average mortgage repayment at £737 and the average rental costs coming in at £670.

Over the past 9 months, there has been quite a shift in these statistics, as when the same research was carried out in October of 2016, it was more cost effective to buy in 60% of British cities.

When comparing each of the cities it was the residents of the capital that benefit the most from choosing to rent, as average mortgage payments for a London home (£3,0001) are almost double (47%) the average monthly rental payments (£1,861)

Other cities in which renting results in considerable monthly savings are Cambridge (30% cheaper), Brighton (27% cheaper) and Reading (26% cheaper).

Scotland appears to top the table for when it comes cities in which it is more cost effective to buy. In Glasgow, the average mortgage payments are 31% less than monthly rent, meaning savings of £174 when choosing to buy. Dundee offers similar savings as servicing a mortgage is 29% cheaper than paying monthly rent.

Spokesperson for Zoopla, Lawrence Hall commented on the findings of the research “It is important to remember that whilst renters may be better off in the short to medium term in some areas of the country, buying a property is a long-term investment. With most buyers opting for mortgage terms of 25 years, buyers are likely to be better off overall compared to those who choose to rent.”

This shift could be attributed to the continuous lowering of interest rates, coupled with the numerous government schemes aimed at first time buyers to assist them on to the property ladder. Recent government initiatives have certainly made buying a home more attractive, which in turn has helped drive the prices up.

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Cirencester Estate Agent

Patience, Gorgs and Alex Geikie, April 2021

We are a returning client of Butler Sherborn and we would highly recommend them if you’re looking to sell your property. The two properties we sold with BS were very different, but the BS team have always been extremely professional, approachable and friendly. And their communication skills are second to none! Thank you again!
— Patience, Gorgs and Alex Geikie