The average cost of renting a home is now more expensive than buying a property, a new study from one of the UK’s most popular property websites has claimed.
The research – carried out by Zoopla.co.uk – found that the average cost of renting in the UK comes in at 9.7 per cent higher than owning a house where the average interest repayments on the mortgage are 5 per cent per annum.
Rental costs have been rising across the UK in recent months due to increased demand for rented property caused by the difficulties would be home buyers face in obtaining mortgage finance.
Nicholas Leeming, business development director of Zoopla.co.uk, said: “The relative cost of renting as opposed to buying has increased over the past 12 months as rents have risen and house prices and interest rates have remained flat.”
“Almost 750,000 would-be first-time buyers have reluctantly ended up as renters over the past 3 years as a result of being unable to get a mortgage.”