The study says that in most cities in the UK buying is cheaper than renting and saves £1,098 (€1,301) per year on the average, according to ee24.com citing Property Wire. Only in 6 of 50 UK largest cities it is more advantageous to rent than to buy.
The average rent for two-bedroom apartment in the UK is £8,258 (€9,787) per year , which is £1,098 more than the cost of service interest only mortgage. This type of mortgage requires that initially you only pay interests and the lending amount must be paid only in several years. The average payment of 5% per annum costs £7,160 (€8,486) per year.
In city of Reading (pop. 143,000) the purchase of housing is cheaper than renting by 34%. It is common tendency for towns in the North, where housing prices stay low and rise more slowly than in the South.
In contrast, Swansea (pop. 180,000) leads among cities where renting is cheaper, the difference with owning is 11%. The same with London. Prices for residential real estate increased there by 5.9% in the last year and it has led to the fact that renting became more advantageous than buying.
Lawrence Hall, expert of Zoopla, warns that if prices keep to increase, it will be cheaper to rent than to buy in many cities, as it has already happened in London.