Renting costs a third less than buying |
04 2008 |
| The cost of renting is just 68 per cent of the cost of buying a two or three-bedroom property, according to a new study from Hometrack. The UK's leading housing intelligence business conducted a survey which showed that 28.3 per cent of young buyers are financially unable to secure a property in their local area. The results are a clear indication of why renting is a far more favourable option amongst the younger generation amidst rising food and fuel prices in the current global economic slowdown. Hometrack's director of research Richard Donnell said: "The extra cost and general market uncertainty is driving would-be purchasers into the rental market where renting is currently cheaper than buying - this was not an option in the late 1980s as the rented sector did not exist in its current form." Historic house price growth has ensured that average mortgage prices for the younger age group increased by 12 per cent during 2007. Hometrack also point out that the mortgage cost to earnings ratio for first-time buyers (34.5 per cent last year) is now higher than the 34.1 per cent seen in 1990 before the previous housing market crash.  |
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