So-called Generation Rent may complain bitterly about being forced to pay sky-high living costs, but a new study has found in many UK cities, it’s actually cheaper to rent than it is to buy a home.
The study, by Zoopla, found the average monthly rental cost in many of the UK’s largest metropolitan hubs is less than servicing a mortgage.
London was, naturally, the area with the biggest gap between rent and mortgage payments. Homeowners in the capital who have a mortgage with a 90 per cent loan to value ratio can expect to pay £3,000 per month, whereas the average rental cost is £1,861.
Cambridge came second in the ranking, with monthly mortgage payments of £1,488, versus rents of £1,099.
Brighton, Reading, Bedford and Liverpool were also listed among the top 10.
At the other end of the scale, with an average rental cost of £649 a month, tenants in Glasgow can expect to pay 31 per cent more than mortgage holders, who pay £475 a month.
Read more: This London borough has the UK’s worst salary to house price ratio
Where it’s cheaper to rent than buy
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That may yet change for those living in the capital: figures published earlier this month showing rents fell 1.2 per cent in April, the first fall since the financial crisis. Meanwhile, house prices are still growing: according to Hometrack, house prices rose 4.9 per cent in March (although that figure was one of the lowest in the country).
Lawrence Hall, spokesperson for Zoopla, said: “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.”