Falling prices and rising demand have made it cheaper to buy than rent property in 45 of Britain’s 50 largest towns and cities. It is now an average 13% more expensive to rent than own, according to research from property search website Zoopla.co.uk.
The results were based on a comparison of asking prices and rents based on an interest-only mortgage of 5% per annum. Even in London (where the average asking price for a 2-bedroom flat is over GBP 400,000), buying is still cheaper than renting. Here by an average 28%.
Zoopla’s Nicholas Leeming commented:
With house prices down, low interest rates and sky high demand in the private rental sector, buying has never been a better option for those able to secure a mortgage. And with owners reducing prices further in order to achieve a sale before Christmas, there may well not have been a better time to buy in recent times.
In a previous interview, Erica Evans of UK property consultancy Expatfindaproperty.com told Expat Wealth that property in popular areas of cities like London can often be a solid liquid investment. “Good properties in popular parts of London will always sell,” she said, “which can be a useful insurance in a slow market if a client needs to liquidate an asset quickly.”