In London renters save around £4,000 a year over buyers and the average national cost to rent is now 9.7% higher than the cost to own according to the latest research from property website Zoopla.co.uk.
Christian Harper of London’s flat-fee estate agent
OliverFinn concurs with the latest findings: “We have certainly seen an increase in rental prices in Chiswick, Clapham and Notting Hill Gate. People seem to prefer the renting option at the moment even though buying often works out to be less expensive.
“In these tough economic times people aren’t as keen on committing to a mortgage and prefer the flexibility of renting a property.”
The latest research looks at the current asking prices and rents of two-bedroom flats around the country and assumes interest-only mortgage payments of 5% p.a. to provide a comparison to the cost of renting.
[caption id="attachment_3713" align="alignright" width="209" caption="Renting costs more than buying"]
[/caption]
In London, which has by far the highest property prices in the country and where the average 2 bedroom flat is going for £431,366, buying is still 16% more cost-effective than renting. With average rents at £2,137 per month in the capital versus an average cost of a 5% interest-only mortgage at £1,797 per month, renters pay an extra £4,080 annually compared to owners.
Nicholas Leeming,
Zoopla’s business development director: “The relative cost of renting as opposed to buying has increased over the past 12 months as rents have risen and house prices and interest rates have remained flat. Almost 750,000 would-be first-time buyers have reluctantly ended up as renters over the past 3 years as a result of being unable to get a mortgage.
[/caption]
In London, which has by far the highest property prices in the country and where the average 2 bedroom flat is going for £431,366, buying is still 16% more cost-effective than renting. With average rents at £2,137 per month in the capital versus an average cost of a 5% interest-only mortgage at £1,797 per month, renters pay an extra £4,080 annually compared to owners.
Nicholas Leeming, Zoopla’s business development director: “The relative cost of renting as opposed to buying has increased over the past 12 months as rents have risen and house prices and interest rates have remained flat. Almost 750,000 would-be first-time buyers have reluctantly ended up as renters over the past 3 years as a result of being unable to get a mortgage.
