On a monthly basis, it’s cheaper to buy than rent in every local authority in the north-east and north-west of England, in addition to Wales and Scotland.
The Telegraph recently analysed data from Zoopla and Hometrack to see what cities and regions are cheaper to buy or rent in when looking at average monthly costs. The stats are based on two-bedroom properties with a 1.89% interest rate and a loan-to-value ratio of 85% over 25 years.
The data found that property rentals tend to be cheaper than buying in areas with higher property prices, and areas with lower house prices tend to have higher rent in comparison with buying costs. London is the only region in the UK with a majority of local authorities seeing lower monthly renting fees than buying.
The north’s affordable housing prices and lucrative property market
Property in the north of England is typically cheaper to buy than rent, especially in the north-east and north-west, making this region great for homebuyers, buy-to-let landlords, and investors.
Leeds has nearly a 20.1% difference between the average price of renting and buying. Rent is approximately £623, while the monthly costs associated to buying a property comes to £498. On top of the affordable buying costs, Leeds is continuing to be revitalized. A £350 million development plan was earmarked for the South Bank area, including 750 new homes and as many as 10,000 people could live and work in the area. This will further open up opportunities in the city’s property market.
Demand soars in the Midlands
Featuring a 22.7% difference, Birmingham has an average buying cost of £512 and renting cost of £663. The Midlands have seen tenant demand soar recently with Birmingham becoming a magnet for those leaving London. This is expected to continue as the city is hosting the 2022 Commonwealth Games, which will bring a new development of 3,000 new homes to the area after the event.
Manchester sees an even larger price difference at 28.4% with rent costing approximately £725 a month and buying costs coming in at £519. Boasting one of the UK’s fastest growing economies, Manchester has a high demand for rental properties with increasing price growth and high rental yields, making it a lucrative city for buy-to-let investors.
With a whopping 40.6% difference, Liverpool has a low average monthly buying cost of £323 and a renting cost of £543. As a new construction project is being planned for Liverpool, which is expected to bring 2,000 new homes and 1,000 jobs, the fastest growing city in the UK’s property sector is becoming even more enticing for homebuyers and investors.
With new developments, growing house prices, and a rise in rental demand, the north’s property market continues to excel and boast lucrative opportunities.
