Glasgow top place in UK where buying is cheaper than renting
GLASGOW is the location where buying a home is more cost effective than renting, research has found.
Property website Zoopla found that it is cheaper than to rent in 48 per cent of cities in the UK.
Glasgow, followed by Coventry, Birmingham and Bradford, are the top cities where buying is most cost-effective.
Zoopla analysed the current asking prices and rents of two-bedroom properties currently on the market in Britain’s biggest cities.
In Glasgow, Coventry and Birmingham renters can find themselves paying over £100 a month more than those with a mortgage, the research found.
Meanwhile, renters are most likely to be better off than mortgage payers in pockets of the south of England, where the supply of homes is tight and house prices are high, with Cambridge, London and Brighton being the top places where renting is cheaper than paying a mortgage, the research suggests.
In Cambridge, the average monthly rent can work out at £769 less than a mortgage payment, the research found.
The study assumed that someone buying a home had a 10 per cent deposit and was paying a 25-year repayment mortgage with an interest rate of 4.5 per cent.
When the data was last analysed in October 2015, buying was cheaper than renting in just over one third (36 per cent) of cities.
Lawrence Hall, a spokesman for Zoopla, said: “Once you get past the initial fees that come with a house purchase, such as a deposit and stamp duty, our figures show that it can pay to try and get on the property ladder.
“On top of the enjoyment that can come with owning your property, buyers may also find themselves with more disposable income at the end of the month than those renting their homes.
“Particularly if you’re in Scotland, northern England or in the West Midlands, taking the first step on to the ladder and sacrificing the flexibility of renting can be a much cheaper alternative.”
Top locations where buying beats renting, according to Zoopla:
Here are the top cities where renting beats buying according to Zoopla: