Research Reveals It Is Cheaper To Rent Than Buy In London

Posted by on Jan 2, 2018 in Hotel | Comments Off on Research Reveals It Is Cheaper To Rent Than Buy In London

Research Reveals It Is Cheaper To Rent Than Buy In London

Based on a recent research, out of the 50 cities in Britain, London is the only one where it is cheaper to rent a flat with two bedrooms compared to buying it and paying a mortgage. This may be the reason why rent flat in London is the most preferred options by young people.

In the remaining 49 large cities, research by Zoopla showed that it is cheaper to buy a property rather than to rent. In London, renters are paying £1,840 compared to an average mortgage payment per month of £2,168. There is a different of £328 between the two.

In all of the other major cities, the average mortgage homeowners have to pay monthly for a flat with two bedrooms ranges from £564 to £136.47. This is lower compared to a monthly rent payment which averages at £700.47. The figures were calculated by using the loan to value mortgage of 85 per cent while the medium asking price is at £149,539.

The same research also revealed that renting a property could become more expensive. According to 57 per cent of real estate agents, there will be more renters that will enter the market in 2018. 30 per cent of these real estate agents believe that additional rental properties will be developed to answer the expected demand.

Homeowners residing in Scotland as well as North of England join the list of the city with the lowest mortgage payment in comparison to rental values.

Glasgow is the number one city wherein the mortgage repayments on a monthly basis are lower compared to the monthly rental. In this area, the homeowners are paying a mortgage that is 57 per cent lower compared to rent.

Cambridge and Brighton, both towns in the south, showed that the buying and renting amount have only a one per cent difference.

Zoopla’s spokesperson, Lawrence Hall, said that the research only proves that to rent flat in London is the most ideal option and in the remaining cities, buying is more favorable. The numbers only show that renters are paying higher compared to homeowners that are repaying a mortgage.