10 May Cheaper to rent prime UK property
In London the average rent for a prime property in the capital is £3,943 compared to an average mortgage cost of £4,339. But PrimeLocation said that it was likely that prime property was going to become more affordable to rent in the coming months. Figures reveal it costs £1,238 per month to rent the average prime property, some £369 less than monthly mortgage repayments.
The post-recession prime market has remained comparatively strong as house/rental? prices have risen by 9.3% since January 2008 when the downturn began.
Nigel Lewis, property analyst at PrimeLocation, said: “It’s clear that across the UK the more expensive a home is, the better value you get by renting rather than owning it despite the low cost of borrowing at the moment.
“London is still comfortably the most expensive market for prime renters as demand for property in the capital continues to grow. The prime rental market is very healthy so for those who are looking to rent a property at the higher end of the market, now is an excellent time to be shopping around.”
Average mortgage costs based on an 80% LTV rate and an interest rate of 1.99% over a 25 year term.