Cheaper to rent a home than buy in over half of Britain’s biggest cities (and where you’re better-off buying)
The monthly cost of renting a two-bed is cheaper than servicing a mortgage in 54 per cent of Britain's 50 biggest urban areas
IT is cheaper to rent a home than buy in more than HALF of Britain's big cities and towns, new data has found.
The monthly cost of renting a two-bed house is cheaper than servicing a mortgage in 54 per cent of Britain's 50 biggest urban areas, Zoopla found.
London's rental market proved the most cost-effective against buying - with the average rent costing £1,861 a month while house prices average at £599,950.
Mortgage repayments in the capital could set homeowners back £3,001 a month - almost double the price of renting.
Cambridge and Bristol, where house prices have jumped in recent years, were also on the list of places where the monthly cost of renting a home is likely to beat buying.
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In contrast Glasgow and Dundee topped the list of places where monthly mortgage payments were found to be cheaper than renting.
The research analysed the asking prices and rents on two bedroom homes which might typically be bought by first-time buyers.
It assumed a buyer would have a 10 per cent deposit to put down and would be repaying their mortgage over 25 years.
Across Britain's 50 biggest cities, the average monthly rental payment on a two bedroom home is £690 - £47 less per month than those making mortgage repayments of £737, Zoopla found.
Lawrence Hall, a spokesman for Zoopla, said: "These figures are encouraging for those who are currently renting and perhaps looking to save as much as they possibly can to get on the property ladder.
"It is important to remember that whilst renters may be better off in the short to medium term in some areas of the country, buying a property is a long term investment."
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