In most of the cities of Great Britain, it is more profitable to rent any private property (an apartment, a house) than buying it. Traditionally the house’s owners pay twice more than those ones, who have chosen rent. In case you are really eager to have your own real estate, go to Glasgow — it is the cheapest in this area.
Who pays more?
Those ones that rent a “traditional” house with 2 bedrooms pay for it about £700 monthly (or even less). It is almost 50 pounds less than standard mortgage payments that are always supported by the loans (90%) – the annual percentage here is 4.5%.
London inhabitants that own real estate pay for their houses almost half more than those Londoners, who rent flats, houses, and apartments. The proportion is as follows: £3,001 to £1,861. Vero good “average” house with 2 bedrooms in Cambridge will cost you £1,099 monthly if you rent it.
Why is renting cheaper?
The answer to this complicated question is simple. Since the middle of Fall 2016, the number of the places where you can rent a very cheap house has grown up to 14%. In more than 40% of the cities located in Britain, you will pay less when you rent private property than you buy it and pay the mortgage.
However, the houses’ and apartments’ owners have a really great advantage: they invest their money. As the real estate prices have been always growing, they can sell their homes with good profits. In twenty-five years, they can buy the better houses, or get enough money from selling their real estate.
Who does it mean?
The situation that is described above has a great effect on the citizens of London — in more than a half of cases they prefer to rent than to buy a flat or a house.
The cheapest housing objects that you can rent in the GB are located in Brighton (here you can save 27%), Cambridge (30%), Reading (26%), Liverpool (23%), Bedford (24%), Bristol (16%), Southampton (20%), Bournemouth (14%) and Oldham (also 14% savings).
Meanwhile, the owners of new houses and apartments pay 10% less mortgage for their real estate, which is also extremely important.
What’s the conclusion?
However, the investigation has shown that in some GB cities, you will be in profit if you buy not rent any home. For instance, in Glasgow, the mortgage servicing is only £174. It is several times less than renting. In Dundee, you will pay £549 monthly if you have a good standard house with two bedrooms. The other cities, where you’d better buy real estate than rent it, are Leeds, Barnsley, and Bradford.
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Top 10 locations where renting beats buying: |
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|
Rank |
City |
Average monthly rent |
Average asking price of 2-bed home |
Average mortgage repayment (based on 90% loan) |
Buying premium |
|
1 |
LONDON |
£1,861 |
£599,950 |
£3,001 |
-47% |
|
2 |
CAMBRIDGE |
£1,099 |
£297,498 |
£1,488 |
-30% |
|
3 |
BRIGHTON |
£1,199 |
£315,000 |
£1,576 |
-27% |
|
4 |
READING |
£1,000 |
£260,000 |
£1,301 |
-26% |
|
5 |
BEDFORD |
£764 |
£195,000 |
£975 |
-24% |
|
6 |
LIVERPOOL |
£623 |
£156,750 |
£784 |
-23% |
|
7 |
SOUTHAMPTON |
£779 |
£189,750 |
£949 |
-20% |
|
8 |
BRISTOL |
£900 |
£210,995 |
£1,056 |
-16% |
|
9 |
OLDHAM |
£476 |
£109,950 |
£550 |
-14% |
|
10 |
BOURNEMOUTH |
£848 |
£194,975 |
£975 |
-14% |
Source, Zoopla April 2017
|
Top 10 locations where buying beats renting: |
|||||
|
Rank |
Location |
Average monthly rent |
Average asking price of 2-bed home |
Average mortgage repayment (based on 90% loan) |
Rental Premium |
|
1 |
GLASGOW |
£649 |
£95,000 |
£475 |
31% |
|
2 |
DUNDEE |
£549 |
£82,000 |
£410 |
29% |
|
3 |
COVENTRY |
£775 |
£125,000 |
£625 |
21% |
|
4 |
BRADFORD |
£493 |
£79,998 |
£400 |
21% |
|
5 |
BARNSLEY |
£450 |
£75,000 |
£375 |
18% |
|
6 |
LEEDS |
£736 |
£125,000 |
£625 |
16% |
|
7 |
MIDDLESBROUGH |
£497 |
£84,950 |
£425 |
16% |
|
8 |
BOLTON |
£493 |
£85,000 |
£425 |
15% |
|
9 |
BIRMINGHAM |
£749 |
£130,000 |
£650 |
14% |
|
10 |
WALSALL |
£523 |
£91,000 |
£455 |
14% |
Source, Zoopla April 2017
Below is the full list of 50 cities, in order of where renting is proportionately cheaper than buying.
|
Rank |
City |
Average monthly rent |
Average asking price of 2-bed home |
Average mortgage repayment (based on 90% loan) |
Buying premium |
| 1 | LONDON | £1,861 | £599,950 | £3,001 | -47% |
| 2 | CAMBRIDGE | £1,099 | £297,498 | £1,488 | -30% |
| 3 | BRIGHTON | £1,199 | £315,000 | £1,576 | -27% |
| 4 | READING | £1,000 | £260,000 | £1,301 | -26% |
| 5 | BEDFORD | £764 | £195,000 | £975 | -24% |
| 6 | LIVERPOOL | £623 | £156,750 | £784 | -23% |
| 7 | SOUTHAMPTON | £779 | £189,750 | £949 | -20% |
| 8 | BRISTOL | £900 | £210,995 | £1,056 | -16% |
| 9 | OLDHAM | £476 | £109,950 | £550 | -14% |
| 10 | BOURNEMOUTH | £848 | £194,975 | £975 | -14% |
| 11 | MILTON KEYNES | £922 | £210,000 | £1,051 | -13% |
| 12 | YORK | £775 | £175,000 | £875 | -12% |
| 13 | SWANSEA | £649 | £145,000 | £725 | -11% |
| 14 | ABERDEEN | £692 | £152,500 | £763 | -10% |
| 15 | COLCHESTER | £749 | £165,000 | £825 | -10% |
| 16 | MANCHESTER | £792 | £172,495 | £863 | -9% |
| 17 | NORWICH | £692 | £150,000 | £750 | -8% |
| 18 | CARDIFF | £723 | £155,000 | £775 | -7% |
| 19 | PLYMOUTH | £593 | £125,000 | £625 | -5% |
| 20 | HUDDERSFIELD | £536 | £112,500 | £563 | -5% |
| 21 | STOCKPORT | £623 | £130,000 | £650 | -4% |
| 22 | IPSWICH | £649 | £135,000 | £675 | -4% |
| 23 | SHEFFIELD | £623 | £127,463 | £638 | -2% |
| 24 | SWINDON | £692 | £140,000 | £700 | -1% |
| 25 | LINCOLN | £549 | £110,000 | £550 | 0% |
| 26 | EDINBURGH | £874 | £175,000 | £875 | 0% |
| 27 | DERBY | £575 | £115,000 | £575 | 0% |
| 28 | NORTHAMPTON | £701 | £140,000 | £700 | 0% |
| 29 | NOTTINGHAM | £627 | £125,000 | £625 | 0% |
| 30 | PRESTON | £541 | £103,000 | £515 | 5% |
| 31 | STOKE-ON-TRENT | £476 | £89,950 | £450 | 6% |
| 32 | ROTHERHAM | £450 | £85,000 | £425 | 6% |
| 33 | WIGAN | £450 | £83,733 | £419 | 7% |
| 34 | LEICESTER | £649 | £120,000 | £600 | 8% |
| 35 | NEWCASTLE UPON TYNE | £597 | £110,000 | £550 | 8% |
| 36 | HULL | £493 | £90,000 | £450 | 9% |
| 37 | WOLVERHAMPTON | £549 | £99,950 | £500 | 9% |
| 38 | DONACASTER | £497 | £89,995 | £450 | 10% |
| 39 | WARRINGTON | £593 | £105,000 | £525 | 12% |
| 40 | PETERBOROUGH | £692 | £122,250 | £612 | 12% |
| 41 | WALSALL | £523 | £91,000 | £455 | 14% |
| 42 | BIRMINGHAM | £749 | £130,000 | £650 | 14% |
| 43 | BOLTON | £493 | £85,000 | £425 | 15% |
| 44 | MIDDLESBROUGH | £497 | £84,950 | £425 | 16% |
| 45 | LEEDS | £736 | £125,000 | £625 | 16% |
| 46 | BARNSLEY | £450 | £75,000 | £375 | 18% |
| 47 | BRADFORD | £493 | £79,998 | £400 | 21% |
| 48 | COVENTRY | £775 | £125,000 | £625 | 21% |
| 49 | DUNDEE | £549 | £82,000 | £410 | 29% |
| 50 | GLASGOW | £649 | £95,000 | £475 | 31% |