The latest figures from property website Zoopla indicate that falling house prices and a rise in rental demand have resulted in the average renter in Britain currently paying 13 per cent more than the average home owner.
Milton Keynes is top of the list, with average rents at £760 for a two-bed flat - 39 per cent higher than the cost of owning - meaning that renters are paying an extra £2,550 each year to rent.
In London, average rents are £2,290 while the average price for a two-bedroom flat is £430,500. So renters are paying an extra 28 per cent or £5,960 each year.
Nicholas Leeming from Zoopla says
"With house prices down, low interest rates and sky-high demand in the private rental sector, buying has never been a better option for those able to secure a mortgage.
And with owners reducing prices further in order to achieve a sale before Christmas, there may well not have been a better time to buy in recent times."