Homebuyers find it cheaper to own a House than Renting
Why is it cheaper to own a house than rent
It has become common knowledge that home owners find it cheaper to own their house than tenants who have to rent. This is due to incredibly low interest rates that have made mortgages more affordable than ever. Now we have some solid figures that back up the facts and show you why it’s best not to sell your house and choose to rent.
Why should I not sell my house fast
Rather than choosing to sell your house and rent if you do have a low cost mortgage then this could save you thousands when compared to the cost of renting. The new data released today shows that the average mortgage in the UK is £1080 cheaper than the cost of renting. The average mortgage costs £580 per month whereby the average cost of renting is £670 per month.
No one thought that interest rates would ever go to as low as they have and also many didn’t predict that The Bank of England Interest Rate would remain so low for so long. Analysts believe that this is set to continue and they don’t believe that Interest rates will rise any further next year so house owners should continue to benefit. For those who have to rent it appears that rental prices are continuing to rise fast. It’s estimated that 10% of Landlords will but their rentals up by 5% next year.
The new data analysed the top fifty towns in the UK. Just 10% of these areas found it cheaper to rent than to own your house. Before the economic crisis it was usually always the case that renting was a cheaper option and so it should be, particularly as you don’t actually own your property. The analyst from Zoopla has stated that “the cost of renting is increasing due to the fact that many first time buyers can’t get a mortgage”.
Obviously with more competition in the rental market there are less homes available and landlords will profit further from putting their rents up. With many people still unable to sell their house fast many sellers are being forced to lower their sale price, making it even for cheaper for those who want to get on the property ladder quick and unfortunately as tempting as it is, a lack of mortgage availability forces would be buyers to rent. It’s the lenders who need to loosen their criteria so that buyers re enter the market and their is less rental demand.
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