“Cheaper to Buy than Rent in Every Major British City – Rightmove Analysis”
According to a recent report from Rightmove, it is now more cost-effective to buy a property than to rent in every major city in Britain. This news is sure to excite many first-time buyers who have been diligently saving up for their deposit in hopes of finally getting onto the property ladder.
The report states that the average asking price for a typical first-time buyer property in Aberdeen is currently £102,602, with the average monthly mortgage payment coming in at £406. Data from UK Finance reveals that the average deposit size in Scotland and Wales is 20%, while in England it is 25%. More first-time buyers are opting for longer mortgage repayment terms to improve affordability.
Bradford ranks as the second cheapest city for first-time buyers, with an average asking price of £107,929, followed by Sunderland at £111,263. On the other hand, Carlisle is the most affordable city for renters, with the average advertised rent for a two-bedroom property at £607 per month. In contrast, Oxford tops the list as the most expensive city outside of London for renters, with average rents reaching £1,561 per month.
Despite slightly higher mortgage rates compared to last year, there has been more stability since rates peaked in July 2023. The average monthly mortgage payment for first-time buyer properties in Great Britain is only £53 more than last year, while renters have seen an £81 increase.
Overall, it is more economical to buy than rent in all major cities in Britain, including in the capital. The cost of renting a property has increased by 39% in the last five years, compared to a 19% rise in the cost of buying. Even with a smaller deposit of 15% and a shorter repayment term, buying remains cheaper than renting in 39 out of Britain’s 50 largest cities.
Rightmove property expert Tim Bannister commented on the findings, stating that the high costs of renting have made buying a more attractive option, even with higher mortgage rates. Longer mortgage terms are becoming more common to enhance affordability, but potential buyers should be aware of interest payments versus the actual mortgage amount.
With the shortage of affordable rental properties in Britain, owning a home is likely to remain the ultimate goal for those who can gather a deposit and secure financing. Despite the current market conditions, the allure of homeownership continues to drive many aspiring buyers towards their goal of purchasing their own property.
