Buying beats renting in the UK, according to new research
from the property website Zoopla.co.uk.
The report, which analysed the current asking prices and
rents of over 78,000 two-bedroom flats currently on the market, compared the
rental and ownership costs (based on an interest-only mortgage at 5% p.a.) and
found that the high demand for rented accommodation has led to buying
being a better option for people hunting for a home in the UK.
Figures up 10 per cent on last year
Buying is now cheaper than renting in 47 out of the 50
largest towns in the UK, accounting for a staggering 94 per cent of British
property markets. Swansea, Plymouth and Bournemouth are the only three towns
where renting is the cheaper option for property investors, with rates
lower than the average asking price.
Milton Keynes, however, is highlighted as the best for
buying a property because renting is 36 per cent more expensive per annum than
owning a house.
Zoopla adds that this disparity has increased from 2010, when
it was cheaper to buy rather than rent in only 40 out of the same 50 UK towns.
Nicholas Leeming of Zoopla.co.uk, said: ââ¬ÅAlthough buying may
be more cost-effective than ever compared to renting, many potential buyers
arenââ¬â¢t able to take advantage because they canââ¬â¢t access mortgage finance. The
shortage of financing, especially to first time buyers, has pushed demand for
rental property through the roof. But for those lucky enough to be in a
position to get a mortgage, there may never have been a better time to buy.ââ¬Â
Buying beats renting again in US
This market situation can be applied to American houses too.
New research has revealed that average prices in the US have fallen by 46 per
cent in the past three years, while rents have increased by 60 per cent.
With
this gap expected to increase next year, the statistics show that for cheap
property abroad or for affordable real estate in the UK, it is always smarter
to buy than to rent.
