17 Nov

Buying houses for sale 'cheaper than renting'

Buying houses for sale 'cheaper than renting'

People could be tempted to look to buy houses for sale after it was revealed that being a property owner is cheaper than renting in 80 per cent of the UK.

Zoopla reported that this is an increase from 74 per cent in July 2010, revealing that the average two-bedroom flat costs 9.9 per cent more than a similar property with an interest-only mortgage at five per cent.

In York and Birmingham it was 39 per cent more expensive to rent than buy, while 12 more cities and towns saw rents exceed mortgage payments by 20 per cent.

Director of the firm Nicholas Leeming said: "We're now seeing a real insider-outsider divide in the housing market."

He added that while people would be better off owning properties rather than renting them, "the doorway to entry into the housing market is narrower than ever".

Mr Leeming blamed the difficulty of getting a mortgage and high deposits as a deterrent for many potential first-time buyers.

Last week, the Rent Index found that over the last six months rents grew by 4.75 per cent and during the last three, they rose by 2.22 per cent.ADNFCR-1222-ID-800241840-ADNFCR

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