According to new research from property website Zoopla.co.uk owning a property instead of renting saves £1,098 per year on average.
The average rental payment on a two-bedroom flat across the UK is £8,258 per year, £1,098 less than the cost of servicing a 5% interest-only mortgage on a similar property, which currently stands at £7,160 per year.
Renting is now the cheaper option in only six of the fifty largest towns and cities across the country.
Reading is the most cost-effective place to buy in the UK, with home-owners paying an average of 34% less than renters.
Conversely renting in London is now a better option than buying thanks to the rapidly increasing house prices in the capital. Renters currently save an average of 9.5% per year over buyers.
Lawrence Hall, Zoopla.co.uk said: “Despite the improved first-time buyer market over the past year, demand for rental accommodation is still fierce.
“Thousands of people who want to buy are still being forced into the private rented sector every month, which is pushing rents up.
“Provided you can get a mortgage, buying is generally the more cost effective option — particularly in the north, where house prices are lower and rising at slower rate than in the south.”
Do you think conveyancers can do more to encourage people to buy? Is there a way to help solicitors educate their clients to buy not rent?