Cost Of Renting Property More Expensive Than Purchasing Property

The cost of renting property in the UK private rented sector (PRS) is more expensive than actually buying property, according to Zoopla.

Renting works out at 13% more expensive than paying off a mortgage, although the gap between the two lifestyle choices has narrowed in recent months due to the rise in residential property values.

Zoopla say the main cause of the narrowing gap is that residential property prices have increased at a faster rate than rents during the past year.

The cost of renting a two-bedroom property in the UK Private Rented Sector is up by an average of £84 (GBP) per month compared to the cost of servicing an interest-only mortgage on the same property, which has risen by just £120 per year.

The average rental payment on a typical two-bedroom property is around £8,006 (GBP) per year, compared with £7,045 (GBP) per year to service a 5% mortgage.