To buy property in the UK is cheaper than renting

Another study of property market in the UK was held on the subject of comparison: what is cheaper: to own residential property in the UK or to rent it. According to new data, if to take a mortgage loan under the terms when you pay the loan interest only, on average you can save about £ 1098 per year, compared to the average rent in the UK. Comparison made for average apartment with two bedrooms, a service for which loan scheme “interest only” costs about £7150 pounds a year. And the rent for similar apartments at the same terms would be £8258 pounds a year.

The resulting savings – about 4 percent of the average annual salary for a full day, which is now equivalent to approximately £26200 pounds a year. Among the 50 largest cities in the UK it is cheaper to buy than to rent in most cities except 6. Among the cities where buying real estate is more profitable, is leading the reading here, the buyer pays for 34% less than the tenant. Outside of reading, to the North of the UK there are an overwhelming number of cities where owning a property is cheaper than to buy it.

Topping the list of Peterboro, Aberdeen, hull. And only one city in the North, Milton, where more efficient to live in rented accommodation than to buy it in property.

Swansea, where the tenant pays 11% less tops the list among cities in the UK, where to rent a residential property is more profitable than to buy it. Renting residential property in London now more attractive than buying in connection with too rapid growth in property prices in London, for which time the price of rent. Housing prices in London over the past 12 months soared by 5.9%, accordingly, the tenant can save 9.5% in the year compared to the buyer.

Despite significant improvement in mortgage lending in the last year, many people are still unavailable mortgage and therefore, they are forced to join the ranks of renters and thus creates pressure on the market and pushes up prices for rental residential property in the UK.

However, the planned improvement of the movement in the sales market, price growth may change the situation when cheaper will be the rent that, in fact, we see the example of London, where housing prices far outstrip prices for all other cities in the UK.

® Alice Morgan 04.10.2013