This week the news in the rental market is the discovery that renting generally is more expensive than buying.
The past findings were showing it was 40 out of 50 places it was better to buy than rent. But renting is now 15% more expensive than owning on average across Britain with buying now beating renting in 47 of the 50 largest towns across the country, according to Zoopla’s analysis.
The latest Rent versus Buy chart shows:
- Renting now 15% more expensive than owning on average across Britain
- Buying property more attractive than it has ever been compared to renting
- Swansea, Plymouth and Bournemouth only places where renting rules
- Renters in London pay £6,888 p.a more on average than homeowners
Locations where renting rules over buying
| Rank | Location | Avg. Monthly Rent* | Avg. Asking Price* | Rental Discount** |
|---|---|---|---|---|
|
1 |
Swansea |
£653 |
£172,871 |
-9.3% |
|
2 |
Plymouth |
£618 |
£158,693 |
-6.6% |
|
3 |
Bournemouth |
£756 |
£192,456 |
-5.7% |
- Source: Zoopla.co.uk
- * Based on 2 bedroom flats on the market for sale/rent in November 2011
- ** % variance between monthly rent and interest-only mortgage payment at 5% pa
Top 10 locations where buying beats renting
| Rank | Location | Avg. Monthly Rent* | Avg. Asking Price* | Rental Discount** |
|---|---|---|---|---|
|
1 |
Milton Keynes |
£756 |
£133,217 |
36% |
|
2 |
Warrington |
£601 |
£108,604 |
33% |
|
3 |
Walsall |
£507 |
£92,031 |
32% |
|
4 |
Coventry |
£582 |
£105,850 |
32% |
|
5 |
Northampton |
£587 |
£106,925 |
32% |
|
6 |
York |
£866 |
£158,127 |
31% |
|
7 |
London |
£2,416 |
£442,036 |
31% |
|
8 |
Wolverhampton |
£505 |
£92,590 |
31% |
|
9 |
Swindon |
£597 |
£110,574 |
30% |
|
10 |
Birmingham |
£706 |
£130,937 |
29% |
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