Glasgow & West Scotland

UK hotspots revealed where 'buying tops renting'

Estate agent signs Image copyright PA

Buying a home is more cost-effective than renting in 48% of British cities, according to a property website.

Zoopla analysed the asking prices and rents of two-bedroom homes currently on the market in the UK's biggest cities.

It found that buying works out cheaper than renting in many parts of Scotland, northern England and the West Midlands.

Glasgow, Coventry and Birmingham were the top three cities for cost-effective buying. Cambridge, London and Brighton were top for cost-effective renting.

Top 10 cities where buying beats renting

  1. Glasgow
  2. Coventry
  3. Birmingham
  4. Bradford
  5. Newcastle-upon-Tyne
  6. Bolton
  7. Peterborough
  8. Nottingham
  9. Barnsley
  10. Stoke-on-Trent

The survey found that in Glasgow, Coventry and Birmingham renters could pay more than £100 a month than those with a mortgage.

Renters were most likely to be better off than mortgage payers in pockets of the South, where the supply of homes is tight and house prices are high.

Cambridge, London and Brighton are the top places where renting is cheaper than paying a mortgage, the research suggests.

In Cambridge, the average monthly rent was found to be about £769 less than a mortgage payment.

Top 10 cities where renting beats buying

  1. Cambridge
  2. London
  3. Brighton
  4. Swansea
  5. Wigan
  6. Aberdeen
  7. Reading
  8. Bournemouth
  9. Rotherham
  10. Southampton

Lawrence Hall, a spokesman for Zoopla, said: "Once you get past the initial fees that come with a house purchase, such as a deposit and stamp duty, our figures show that it can pay to try and get on the property ladder.

"On top of the enjoyment that can come with owning your property, buyers may also find themselves with more disposable income at the end of the month than those renting their homes.

"Particularly if you're in Scotland, northern England or in the West Midlands, taking the first step on to the ladder and sacrificing the flexibility of renting can be a much cheaper alternative."

Zoopla's research assumed that someone buying a home had a 10% deposit and was paying a 25-year repayment mortgage with an interest rate of 4.5%.

When the data was last analysed by Zoopla in October 2015, buying was cheaper than renting in just over one third of cities.

Related Internet links

The BBC is not responsible for the content of external Internet sites