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Cheaper to rent than buy in over half of British cities

19th May 2017

  • Monthly rent is less expensive than monthly mortgage repayments in 54 per cent of British cities (a rise of 14 per cent since October 2016)
  • Renters fare best in London, Cambridge and Brighton
  • Across Britain, renters pay an average of £47 less per month than buyers
  • Renting a property is now cheaper than buying in over half (54 per cent) of British cities according to the latest data from Zoopla.

    Zoopla researched the monthly cost of renting a two-bedroomed home, compared to servicing a mortgage, in Britain’s 50 biggest cities*. The proportion of locations where it is now cheaper to rent a home has increased by 14 per cent since October 2016, when it was more cost effective to buy in 60 per cent of British cities.

    Londoners fare best when it comes to renting, with the average monthly rental cost coming in at 47 per cent (£1,861) less than the average mortgage repayment (£3,001 a month). Commuter hotspot Cambridge takes second place, where the average monthly rent is 30 per cent (£389) less than a mortgage, followed by seaside town Brighton where renting is 27 per cent (£377) cheaper.

    In contrast, the Scottish cities of Glasgow and Dundee top the list of locations where monthly mortgage repayments are cheaper than rent. Glasgow comes in first place with the average mortgage repayment currently 31 per cent (£174) cheaper than monthly rent, followed by Dundee, where it costs 29 per cent less (£549) per month to service a mortgage. Meanwhile, Yorkshire also appears to be a good location for those looking to buy a property, with the cities of Bradford, Barnsley, and Leeds all featuring in the top 10.

    Nationally, across Britain’s 50 biggest cities, the average monthly rental payment on a two-bedroom home comes in at £690 - £47 less per month than those making mortgage repayments of £737 (assuming a 90 per cent LTV mortgage and an average asking price of £147,233).

    Lawrence Hall, spokesperson for Zoopla comments: “These figures are encouraging for those who are currently renting and perhaps looking to save as much as they possibly can to get on the property ladder. It is important to remember that whilst renters may be better off in the short to medium term in some areas of the country, buying a property is a long-term investment. With most buyers opting for mortgage terms of 25 years, buyers are likely to be better off overall compared to those who choose to rent.”

    Top 10 locations where renting beats buying

         

    Rank

    Location

    Median Monthly Rent

    Median Asking Price

    Avg. Monthly Mortgage Repayment (based on 90% LTV)

    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%

    Top 10 locations where buying beats renting

         

    Rank

    Location

    Median Monthly Rent

    Median Asking Price

    Avg. Monthly Mortgage Repayment (based on 90% LTV)

    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%

    - Ends -

    For further information, please contact Tim Vooght at pr@zoopla.co.uk or on 020 3872 5615.

    Notes to editors

    Zoopla is the UK's most comprehensive property website, focused on empowering users with the resources they need to make better-informed property decisions. We help consumers both find their next home and research the market by combining hundreds of thousands of property listings with market data, local information and community tools.

    At Zoopla we are fans of transparency and everything we do is aimed at making the market more efficient for both property consumers and advertisers alike. Zoopla has rapidly become the UK’s leading online destination for property consumers to search for homes and do their market research and the favoured online marketing partner for UK estate agents, letting agents and property developers.

    Launched in 2008, Zoopla has since been one of the fastest growing websites in the UK, now attracting over 40 million visits per month and we are proud to have collected numerous awards and accolades along the way, including being named one of the Top 10 UK Tech Companies (Guardian) and one of the Top 10 Most Innovative UK Companies (Smarta).

    Zoopla is part of Zoopla Limited which was founded in 2007.

    Zoopla Limited, The Cooperage, 5 Copper Row, London, SE1 2LH
    Registered in England and Wales with Company No. 09005884
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