Mortgage payments cost less than monthly rent in over one third of British cities, Zoopla has reported.
It said that buying is most cost-effective in the north, with home owners in Glasgow over £100 better off than if they were renting.
In the south, however, it is cheaper to rent than buy.
As a national average, Zoopla says tenants pay £58 less per month than buyers with a mortgage.
Zoopla’s analysis compares costs of renting versus buying a two-bedroom home.
The study shows that in London the average tenant pays £2,218 per month, compared with an average mortgage repayment of £3,302.
However, in Hull, buyers pay an average mortgage bill of £397 per month, cheaper than the average monthly rent bill of £452.
The top ten locations where renting beats buying are: London, Reading, Cambridge, Brighton, Aberdeen, Bristol, Norwich, York, Bedford and Southampton.
The top ten locations where buying beats renting are: Glasgow, Dundee, Birmingham, Hull, Manchester, Coventry, Edinburgh, Rotherham, Bradford and Sheffield.
To do its sums, Zoopla assumed a 25-year mortgage with repayment and a fixed interest rate at the current average best buy rate of 4.5%, based on 90% loan to value.
Comments (1)
This story doesn’t scan correctly and it looks like someone is comparing Interest and capital repayment figures with rent.
To be properly comparable the only the interest element of the mortgage should be considered. (Interest is rent on money borrowed)