Five UK cities where it is cheaper to rent than buy

The housing market is causing increasing frustration in that there are so many who don’t meet the criteria to qualify for a mortgage so are forced to enter the rental market which is costing them a small fortune.

According to recent research from Zoopla.co.uk, the property website, tenants are now paying an average of 14% more by renting when compared to those with a mortgage. To break that down, by renting a 2 bedroom property the tenant is paying out an extra £987 per year than if they had an interest only mortgage on the same kind of property. It also found that compared to a year ago, mortgages are now cheaper in 86% of the UK compared to 84%.

There is some good news for renters, however, as Zoopla have found 5 cities in the UK where it is cheaper to rent than buy. Laurence Hall from Zoopla.co.uk has said that generally speaking it is more cost effective to have a mortgage than to rent, especially in the north which currently has a big gap between the cost of buying and renting. With that in mind, these are the 5 cities where renting is cheaper.

Swansea has an average monthly rent of £672. The average asking price of a property is £184, 658 so by renting you save 12.7%

Bournemouth has an average monthly rent of £789 and as the average asking price of a property is £207,594 so renters save 8.8%

In Stockport the average monthly rent is £559 and with the average asking price being £141,820 the rental saving is 5.4%

Renters in Dundee pay an average of £533 per month and the asking price is £130,471 on average giving renters a saving of 2%

The average monthly rent in Edinburgh is currently £711 per month and with the average asking price being £173,438 a renter will save 1.6%.

 

 

 

 

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