© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
Research from Zoopla.co.uk suggests that renting is more expensive buying across 80% of the cities/towns in Britain, which is up 74% since July 2010. The average tenant pays 9.9% more than an owner with a 5% mortgage, whereas the previous gap was 8.7% in July 2010.
The underlying factors behind the widening gap between renting and buying are twofold: 1) The severe shortage in mortgage credit availability in limiting entry into home ownership; 2) The re-financing of existing homes with current low interest rates, which allow for lower ownership costs.
However, Zoopla.co.uk also states that the impact of a rise in interest rates could possibly change the scenario. A 1% increase in interest rates, with rent level unchanged, would make renting more cost-effective in 72% of the locations studied.