It’s cheaper to buy than rent in a third of UK cities (Picture: Getty)
If you’re in London, the bad news is that you’re unlikely to save any money while paying off the mortgage on your £1 million bedsit in Zone 6.
You already knew that. But maybe you didn’t know that in 36 per cent of UK cities it actually works out cheaper to buy – and you could save more than £100 each month, especially if you live in Scotland or northern England.
If you’re in London, the bad news is that you’re unlikely to save any money while paying off the mortgage on your £1 million bedsit in Zone 6.
You already knew that. But maybe you didn’t know that in 36 per cent of UK cities it actually works out cheaper to buy – and you could save more than £100 each month, especially if you live in Scotland or northern England.
Donald: he’s just bought a house in Dundee (Picture: Disney)
How much could you save?
Glasgow and Dundee were found to be the locations where buying is most likely to beat renting, leaving people with more than £100 extra in their bank account every month than if they were renting.
Monthly mortgage payments in Glasgow are around £149 cheaper than rental prices while in Dundee they are £110 cheaper.
The bad news is that in places where there is strong competition for houses your wallet will feel the burn whether you’re renting or buying.
In London you could be paying a massive £1,084 a month more to buy rather than rent a two bedroom home and, over 12 months, buying in London could be £13,000 more expensive than renting.
How much you could save per month in the Top 10 cities where buying beats renting
Glasgow£149.00Dundee£110.00Birmingham£97.00Edinburgh£62.00Coventry£56.00Hull£55.00Manchester£54.00Sheffield£31.00Bradford£30.00Rotherham£29.00
Reading, Cambridge, Bristol and Brighton are four other cities where renting is likely to work out cheaper than buying.
How much could you save?
Glasgow and Dundee were found to be the locations where buying is most likely to beat renting, leaving people with more than £100 extra in their bank account every month than if they were renting.
Monthly mortgage payments in Glasgow are around £149 cheaper than rental prices while in Dundee they are £110 cheaper.
The bad news is that in places where there is strong competition for houses your wallet will feel the burn whether you’re renting or buying.
In London you could be paying a massive £1,084 a month more to buy rather than rent a two bedroom home and, over 12 months, buying in London could be £13,000 more expensive than renting.
How much you could save per month in the Top 10 cities where buying beats renting
Glasgow£149.00Dundee£110.00Birmingham£97.00Edinburgh£62.00Coventry£56.00Hull£55.00Manchester£54.00Sheffield£31.00Bradford£30.00Rotherham£29.00
Reading, Cambridge, Bristol and Brighton are four other cities where renting is likely to work out cheaper than buying.
To carry out the study, Zoopla looked at asking prices and rents for two-bedroom properties currently on the market, assuming that this would be the size of a typical first-time buyer home. They found that for someone who can raise a 10 per cent deposit, the monthly cost of buying often works out cheaper than renting, assuming that a buyer would pay the mortgage back over 25 years, with a fixed interest rate at the current average ‘best buy’ rate on the market of 4.5 per cent.
On average across the country, a buyer with a 10 per cent deposit would pay around £58 a month more for a two-bedroom property than they would if they were to rent it, Zoopla found.
Meanwhile in Liverpool...
Some buyers in Liverpool are definitely getting a better deal than renters, as houses go on sale for less than the price of a cup of coffee.
Almost 3,000 people have registered their interest in buying empty terraced properties in the Picton area for £1, the BBC reported.
The derelict houses will need a lot of work on them as they have no electricity or plumbing, but for people handy with DIY they are likely to prove a steal.
To be eligible to buy the houses from Liverpool council, applicants must have lived or worked in Liverpool, be employed and be first-time buyers.
Lawrence Hall, a spokesman forZoopla.co.uk, said: ‘If they can make the leap and are willing to relinquish the flexibility that comes with renting, tenants up North in particular would be much better off buying and paying off a mortgage every month.’
He said that while London and the South East are ‘by no means cheap places to ren … growing pressure on housing supply in this corner of the UK from professionals, families and overseas investors means that getting a foothold on to the property ladder in these areas is only becoming a more costly endeavour, and the mortgage payments attached to this are rising to bridge this gap.’
Metro
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