Author Topic: Rents higher than a mortgage on the same property  (Read 2262 times)

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Philofacts

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Rents higher than a mortgage on the same property
« on: January 09, 2012, 11:59:27 am »
Those saving a deposit are in an even worse position as rising rents are reducing the amount they can save each month.
It now cost more to rent than it does to pay a mortgage in 94% of Britain's largest towns and cities.

Data from property site zoopla.co.uk shows that the cost difference between paying rent and paying for a mortgage has risen by 50% in the last 12 months.
Those that have a 15% deposit would now be about 10% a month better off than those that rent.

Top 10 comparision Renting to Buying (Source Zoopla)

Average monthly rent 2-bed flats against Average asking price 2-bed flats. (based on 85% mortgage @5% apr)

                                      PRICE                  Rent or Buy
   CITY                  RENT           TO BUY      DIFFERENCE     BEST
1 Milton Keynes       £756          £133,217            36%            BUY
2 Warrington           £601          £108,604            33%            BUY
3 Walsall                £507             £92,031           32%            BUY
4 Coventry              £582           £105,850           32%            BUY
5 Northampton        £587           £106,925           32%            BUY
6 York                    £866           £158,127           31%            BUY
7 London             £2,416           £442,036           31%            BUY
8 Wolverhampton    £505             £92,590           31%            BUY
9 Swindon              £597           £110,574           30%            BUY
10 Birmingham        £706           £130,937           29%            BUY

Higher rents and lower mortgage rates are believed to have attracted landlords back into the buy-to-let market, keeping property prices high making it harder for first time buyers.
Pricedout.org.uk has lobbied the government to introduce higher taxation on landlords and special initiatives to help those saving a deposit to get a decent return on their savings.
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