14:43 PM, 26th November 2010, About 11 years ago
A new rent survey based on the average cost of renting compared to buying a similar home on an interest only mortgage at 5%.
Aberdeen is the cheapest place in the country to let a home, with rents 22% below the average cost of buying a similar home on an interest only mortgage at 5%.
The next cheapest were:
The most expensive cities to rent are York and Birmingham, where average rents are 39% higher than the costs of buying.
Rents were 20% more than buying costs in Derby, Reading, Milton Keynes, Walsall, Hull, Dundee, Norwich, Bradford, Preston, Peterborough, Northampton and Coventry.
Buying is still cheaper than renting in London, which has the highest property prices in Britain, with renting showing as 14% more expensive.
Nicholas Leeming, of property rent and sales portal Zoopla that compiled the data, said: “For those who are able to buy a home, costs are low, but for those who can’t, costs are much higher – and the doorway to entry into the housing market is narrower than ever.
“The freezing up of credit has put home ownership beyond the reach of many renters, and it’s driving a larger and larger wedge between them and owner-occupiers.”
He added that while buying wins out over renting now, if interest rates increased by 1% and rents remain the same, renting would become more cost-effective in 72% of the 50 town and cities surveyed.
Overall, the average differential has gone up from 8.7% in July to 9.9% in November – with the rise blamed on a chronic shortage of mortgages that has led people to rent rather than buy, pushing up rents in the process.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
Previous ArticleRunning a buy to let business as a limited company
Next ArticleBLOG QUESTION OF THE WEEK
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|