Glasgow tops list of cities where buying is cheaper than renting

Buying a home is now more cost-effective than renting in nearly two thirds (60 per cent) of British cities, according to Zoopla’s research into the monthly cost of renting a two-bedroom home compared to servicing a mortgage in Britain’s 50 biggest cities.

The proportion of cities that offer better value for money for homeowners has seen a 25 per cent increase since April, when the data was last analysed.

In Glasgow, mortgage repayments are currently 28 per cent cheaper than rental payments. Mortgage payers here part with an average of £450 per month, while renters fork out an average of £596 – a difference of £146, or 28 per cent.

However, across all of Britain’s 50 biggest cities, renters still pay an average of £40 less per month than owners. The current average monthly rent for a two-bedroom home is £714, which comes in lower than the average monthly mortgage repayment cost of £754. This assumes a 90 per cent LTV mortgage and the average asking price of a two-bedroom home in these cities being £150,796.

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

“Although large parts of Britain remain unaffordable for those looking to take their first steps onto 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 of these locations.”