It is now 8% cheaper to buy a property than to rent in the same area even despite higher mortgage rates, Zoopla research has revealed.
Analysis by the portal found that a third of homes of the 500,000 homes currently for sale can be bought with a mortgage and monthly repayments that cost less than the average local rent in the same area.
Zoopla’s analysis found that at a national level, the average monthly UK rent is currently £93 per month or 8% more expensive than the average mortgage repayment for a first-time buyer.
This is based on getting a mortgage with a 20% deposit on a 30-year term at an average mortgage rate of 4.6%.
The difference is an improvement compared with last summer when mortgage rates were 1% higher and it was cheaper to rent than buy.
There were some regional variations, with 40% of homes in the north of England and in Scotland are cheaper to buy, dropping to 27% in the South West.
It is now 8% cheaper to buy a property than to rent in the same area even despite higher mortgage rates, Zoopla research has revealed.
Analysis by the portal found that a third of homes of the 500,000 homes currently for sale can be bought with a mortgage and monthly repayments that cost less than the average local rent in the same area.
Zoopla’s analysis found that at a national level, the average monthly UK rent is currently £93 per month or 8% more expensive than the average mortgage repayment for a first-time buyer.
This is based on getting a mortgage with a 20% deposit on a 30-year term at an average mortgage rate of 4.6%.
The difference is an improvement compared with last summer when mortgage rates were 1% higher and it was cheaper to rent than buy.
There were some regional variations, with 40% of homes in the north of England and in Scotland are cheaper to buy, dropping to 27% in the South West.
According to Zoopla research, it is now 8% cheaper to buy a property than to rent in the same area, even with higher mortgage rates.
The analysis revealed that a third of the 500,000 homes currently for sale can be purchased with mortgage repayments that are less than the average local rent.
Nationally, the average monthly rent in the UK is £93 more, or 8% higher, than the average mortgage repayment for a first-time buyer. This calculation is based on securing a mortgage with a 20% deposit over a 30-year term at an average rate of 4.6%.
This marks an improvement compared to last summer when mortgage rates were 1% higher and renting was more cost-effective than buying. There are regional differences, with 40% of homes in the north of England and Scotland being cheaper to buy, compared to 27% in the South West.
Izabella Lubowiecka, a senior property researcher at Zoopla, highlighted the significance of first-time buyers, who constitute 36% of prospective home buyers planning to move in the next two years.
“While higher mortgage rates have reduced buying power, our data shows there are many areas of the country where home ownership is more accessible assuming the buyer has saved a 20% deposit.”
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