Search


Visa, Visa Delta, Visa Electron, MasterCard, Maestro, Solo

Is it cheaper to rent or buy?

Monday, 15 July 2019  |  Admin

With steep house prices and numerous associated buying costs, is there any merit in renting a property instead?

Landlord and tenant website Bunk has assessed the expense of buying and renting a home over a 10-year period in the UK to compare the costs across different towns and cities.

Rental costs

Average monthly rent in the UK currently stands at £676, with a deposit now capped at five-weeks worth of rent, ie. £845. Over 10 years this amounts to £81,120, or £81,965 including the deposit.

The cost of buying

The average cost of buying a home in the UK is £226,798, meaning a 10 percent deposit would be £22,680. Borrowing the remaining £204,118 at a 10-year fixed-rate of 2.58 percent would mean a total repayment of £231,798, or £254,478 including the deposit.

Renting versus buying

This means that renting a home costs £172,513 less over 10 years, although of course ultimately a buyer will own their property.

Regional variations

Towns and cities where property prices are high offer the biggest saving to renters. In Cambridge, it costs a massive £341,090 more to buy than to rent, while in London the figure is £316,247.

Bournemouth costs £183,376 more to buy than rent followed by Bristol at £177,613. The capitals of Scotland and Wales come next, with Edinburgh at £166,547 and Cardiff at £143,984.

Three southern port cities follow with Southampton at £138,617, Portsmouth at £137,240 and Plymouth at £128,480. Glasgow has the lowest difference, with buying just £43,145 more expensive than renting.

Co-founder of Bunk, Tom Woolard, said “Of course the big difference between renting and buying is that one leaves you with a sizable financial asset as a reward for your years of hard work making mortgage payments.

“However, more and more of us are opting to rent long-term and what we wanted to highlight is that while the rental market is generally viewed in a negative light due to high rental costs, it is actually a considerably cheaper option when compared to homeownership, even with almost record low-interest rates.

“Not only this but those that feel resigned to renting due to the high financial barrier of buying actually have a much better opportunity to save compared to those paying a mortgage. Whether they choose to use this for a deposit further down the road or simply to enjoy a better quality of life is up to them.”

Latest News
Monday, 7 October 2019  |  Admin
What is the difference between exchange of contracts and completion in conveyancing?

The two most important milestones in any conveyancing transaction are the exchange of contracts and completion. We look at the difference between them.

When you have an offer on a house accepted, or you accept an offer to buy, the next step is to instruct a solicitor to act on your behalf.

 

Monday, 30 September 2019  |  Admin
What happens if my landlord passes away?

If a landlord dies, then the person who takes the role of administering their estate becomes the new landlord. This is known as being an ‘accidental landlord’

When your landlord passes away, you may then have to deal with someone who has never been a landlord before and isn’t familiar with the obligations it entails.

 

Monday, 23 September 2019  |  Admin
Points to consider when buying a property abroad

Buying a home abroad is a dream for many people, but you should proceed with caution as there can be many pitfalls to avoid.

Owning a home overseas can be a great way to escape, as well as somewhere friends and family can enjoy and even a good investment. But you need to do your homework before buying.

 

SureMove Property LAwyers