Taking a leap into homeownership can feel like a daunting proposition for many, especially considering the deposit required, the amount of stamp duty payable and additional fees. But while renting offers greater flexibility to move around and less responsibility, becoming a homeowner could prove to make the most financial sense for many according to new statistics.
Recent research has revealed that in two-thirds of Britain’s cities, buying a property is far cheaper than renting. The comparison of renting a two bedroom property as opposed to maintaining mortgage repayments in 50 of the UK’s biggest cities has exposed some surprising results.
Glasgow has come out on top as the best city for buying, with the median monthly rent amounting to &596 compared to an average monthly mortgage repayment of &450.
Second in line, but not far behind is Birmingham with tenants forking out a median of &826 a month on rent compared to an average of &650 each month being spent on mortgage up-keep.
Lawrence Hall of Zoopla has said: ‘Once you get past the initial fees that come with a house purchase, such as a deposit and stamp duty, our figures show that it can pay to try and get on the property ladder.’ ‘Particularly if you’re in Scotland, Northern England or in the West Midlands, taking the first step onto the ladder and sacrificing the flexibility of renting can be a much cheaper alternative.’
Take a look below at the top 10 locations where buying works out cheaper than renting:
- Glasgow
- Birmingham
- Bradford
- Coventry
- Nottingham
- Dundee
- Barnsley
- Middlesborough
- Leeds
- Peterborough
Although this is promising news for many potential buyers looking to get their foot on the property ladder, in some cities property prices may still seem unattainable. London being one, with the median monthly rental cost coming in at 44% lower than the average mortgage repayment of &3127 per calendar month.
Top 10 locations where rental costs are lower than mortgage repayments:
- London
- Cambridge
- Bournemouth
- Aberdeen
- Brighton
- Reading
- Bedford
- Liverpool
- Colchester
- Southampton
Overall the South of England appears to offer much better value for renters. Although it cannot be forgotten that paying into your own mortgage over your landlords can help you to build long term financial security.
Making the decision to purchase a property should not be taken lightly and everybody’s personal circumstances and requirements differ, but in our opinion now is the perfect time to consider buying for tenants across the UK.
Although the cost of buying a home is still increasing, the amount needed to up-keep monthly mortgage repayments in many locations is far less than the cost of renting.
Could it make financial sense for you to get your foot on the property ladder?
