In stark contrast to the general UK property market, research by PrimeLocation.com shows it is cheaper to rent than buy a prime property in the UK, the website’s new Prime Rental Index reveals.
The average cost of renting a prime property in the UK is £1238, some £369 a month less than the mortgage for the average prime property.
In London the gap is even more pronounced. The average rent for a prime property in the capital is £3943 compared to an average mortgage cost of £4339.
The Prime Rental Index also shows that renting a prime property is likely to get even more affordable in the coming months. Following two years of steady growth for the UK prime rental market, asking prices have now fallen to a ten month low, and are £40 a month lower than last September.
But, despite this downward trend in prime asking rents in recent months, the post-recession prime market remains comparatively strong – prices have risen by 9.3% since January 2008, when the downturn began.
These figures paint a very different picture than the overall UK property market, in which it is usually cheaper to own that rent. The average rent for all property is £868 whereas, on average, a mortgage is £105 a month cheaper and in London £463 a month less expensive.