Glasgow tops table for buying home over renting

GLASGOW has come out on top in a list of UK cities where it is more cost-effective to buy a home than to rent.

Property website Zoopla compared the average monthly rents being asked for a two-bedroom home across 50 cities with the cost of paying a mortgage on a similarsized property with a 10 per cent deposit.

It found that in 60 per cent of cities buying a home was more cost-effective than renting. The proportion has increased since April, when buying was more cost-effective than renting in 48 per cent of cities.

Homeowners in Glasgow fare particularly well compared with renters, the research suggests. Mortgage payers in Scotland’s biggest city may find themselves parting with an average of £450 a month, while renters there pay an average of £596 – a difference of £146.

In Dundee, the average mortgage cost was £448, which is £78 cheaper than the average rent of £526.

But the research also showed that, in Aberdeen, renting beats buying. The average mortgage cost there was £925, compared with £726 for renting.

London was found to be the city where renting was particularly likely to beat buying a home.

Zoopla spokesman Lawrence Hall said: “Buying a property is a costly process, but once you get past the initial fees, it can prove a more economical option on a monthly basis.

“Although large parts of Britain remain unaffordable for those looking to take their first steps on to or another step up the property ladder, these latest figures tell an encouraging story.

“Whereas back in April it was cheaper to service a monthly mortgage than pay a rental fee in just under half of Britain’s biggest cities, buyers are now offered better value in nearly two-thirds.”