Owning is now cheaper than renting everywhere in the UK
New market research by Santander Mortgages has found that there is now no part of the country where it is cheaper to rent than own.
It is a sad state of affairs when society presents a glass ceiling to those who find themselves stuck in the rent cycle.
For many Brits, purchasing a home of reasonable value and enjoying all the benefits that come along with it is the ultimate dream. Especially the knowledge that the monthly payments you make each month to keep a roof over your head are furthering the equity you hold within that property instead of lining the pockets of a career landlord.
Sadly, however, the reality of the housing market is a far cry from the aforementioned idyllic situation, with the majority of monthly rental payments far exceeding the size of an equivalent monthly mortgage repayment for the same house, and thanks to new research by Santander Mortgages, it has emerged that owning is cheaper than renting no matter where you live in the UK.
The research, released last month has found that owning a home costs, on average, £2,246 less than renting it, saving an average of over £180 per month.
Why is owning cheaper than renting?
While many older Brits fondly remember the glory days where a house could be bought in its entirety for less than three years wages, the overreaching feeling among younger generations is that the age of prosperity is dead and buried, with an individual needing to save for the best part of a decade just to afford a 15% deposit.
Moreover, as sold house prices continue to rise – albeit at a slower rate than previously – the average deposit needed by a first-time buyer has reached an incredible £51,905.
As these figures continue to increase as we head into the future, you would be well within your right to wonder how an individual in a rental property can ever hope to be in a position to buy with such high monthly living expenditures.
The government are clearly aware of the issue, having made Help To Buy ISAs available to all UK residents to boost savings, but the maximum grant of £3,000 pales into insignificance when compared with the size of most deposits.
This is bad news for a huge number of homeowners who are hoping to sell their house fast, as they are likely to find it increasingly difficult to find a buyer with the necessary financial reserves to purchase. And if they are unable to find a buyer, then their only options are to stay-put, or accept an offer way below their asking price.
Another option is to contact National Homebuyers, who can accelerate the house-buying process by making a formal offer in cash.
Buyers can’t afford your asking price? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.