Owning a home in London is more expensive than renting

April 8, 2016 by Brendan O'Neill

House Prices

According to recent research conducted by Zoopla, the popular property website, renting a home in the Capital is cheaper than buying a property.

The study shows that buying a property costs 46% more on average than renting, which equates to an additional £15,216 each year. The website also states that the average amount spent on renting is £2,109 a month, whereas owning a home is likely to cost £3,377 monthly.

Other cities in the UK face a similar situation, with renting being the cheaper option. Brighton property owners pay 29% more a month in mortgage payments, while owners in Cambridge pay 52% more than renters in the city.

Lawrence Hall, the spokesperson for the website, explained that more expensive mortgage payments in London were caused by a shortage of properties in a city with an average property price of £675,000. He added that although rents were high in London and some other cities in the south, it was still very difficult to get onto the property ladder. Hall said:

“The housing supply pressure in London in particular has become so intense that getting onto the property ladder can be significantly more costly per month than renting.”

The data indicated that in the remainder of the country, buying a property is a more cost effective solution than renting. In Glasgow, the cost of renting is 25% more than buying a property. Mortgage advisers undertake CeMAP training in London and other cities, so they can provide valuable advice for buyers and renters.