Latest research about rent prices rubs salt into FTB wounds
According to research by property website Zoopla.co.uk, it is cheaper to buy property than rent in 94 per cent of UK towns.
In 47 out of 50 town analysed, renting proved to be, on average, 15 per cent more expensive. Only Swansea, Plymouth and Bournemouth were exceptions to the rule; renting cheaper by 9.3 per cent, 6.6 per cent and 5.7 per cent respectively.
The news comes not as a surprise but as yet another dagger in the side of the first time buyer. It is as if the housing market is dangling that proverbial juicy carrot just out of their nibbling reach.
The long term costs associated with buying a house has never been the primary preventative for first time buyers; it is the immediate financial resource required to get on the ladder that has been the show stopper for so many.
Even with an increase in 90 per cent loan-to-value mortgages on the market, the average deposit needed for a first property is now around £27,000¹.
Nicolas Leeming of Zoopla.co.uk said:
“Although buying may be more cost effective than ever compared to renting, many potential buyers aren’t able to take advantage because they can’t access mortgage finance.
“The shortage of financing, especially for first time buyers, has pushed demand for rental property through the roof. But for those lucky enough to be in a position to get a mortgage, there may never have been a better time to buy.”
Content correct at time of publication