Although the rental market in the UK has indeed grown, some new research* has shown that the cost of having a mortgage is cheaper than renting in 84% of the country. Renting is now 16% more expensive than owning across the country.
The shortage of suitable properties for first time buyers, combined with high costs of living reducing the capacity to save for a deposit, means many don’t have a choice to rent or buy; this combined with shortages of property for sale in other areas of the market, with mortgage restrictions and again the high cost of living is keeping the lettings market in high demand and therefore strengthening rental values.
“Despite a recent increase in first-time buyer activity, demand from remains strong and is keeping rental levels at historic highs,” says Nicholas Leeming of Zoopla. “This, along with historically low borrowing costs, makes it as good a time to buy as it ever has been. However many buyers are still unable to take advantage of these conditions because of their inability to secure a mortgage.”
So if you are renting and have the opportunity to buy it seems to make financial sense to do so.
For advice on the property market in your area contact your local Mackenzie Smith Office:
Fleet: 01252 812121 firstname.lastname@example.org
Hartley Wintney: 01252 844015 email@example.com
Hook: 01256 764666 firstname.lastname@example.org
Ash Vale: 01252 353030 email@example.com
Farnborough: 01252 375999 firstname.lastname@example.org
For independent financial advice contact Andrew Fagg of Davenport Financial Management on 07720 353866