First-time buyers in London could save themselves more than £1,000 every month if they continue renting a similar property.
This infographic produced by Property Division, an online property investment news hub, shows that the gap between mortgage payments and rental costs is greatest in London, Reading, Brighton, Cambridge and Aberdeen.
The analysis is based on asking prices and average rents of two-bedroom properties in each of the 5 locations listed below.
The calculations by property portal Zoopla assume purchasers are repaying a 90% mortgage over 25 years at 4.5%.
Property Division CEO Nelly Berova comments: “It is significant that with the exception of Aberdeen – which has been hit by a slump in the price of oil since the data was released – every location this research identifies is in the south-east quarter of England.
“The value of residential property in these areas has increased dramatically in recent years and it is unlikely the gap between mortgage payments and rents will close any time soon.”
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Infographic by Property Division.