New Home Owners And Snagging Forum
Home Owners => House Prices and the housing market => Topic started by: Philofacts 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 (http://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.