To buy or to rent – that is the question
According to a recent news report, buying a property is more cost-effective than renting in a third of British cities.
Property portal Zoopla analysed the cost of renting a two bedroom home compared with buying it and paying a monthly mortgage (with a 10 per cent deposit to put down).
In 36 per cent of cities, it’s more effective to buy (although conversely that means in 64 per cent, it’s cheaper to rent!)
In the top 10 locations where buying beats renting, Hull, Rotherham, Bradford and Sheffield all made the list. For example, in Bradford, it would cost £452 to rent an average two bed home, whereas it would cost £422 on a mortgage repayment.
York was the only Yorkshire city in the top 10 places where it’s more cost effective to rent than buy – with monthly costs of £796 for renting and £914 to buy.
Perhaps unsurprisingly, London topped the list of places where it was cheaper to rent – saving around £13,000 a year. But given London has just overthrown New York as having the world’s premier housing market, that’s no wonder.
Something to consider anyway, when planning your next move!
