As the mortgage market continues to be a challenge for some, the UK rental market appears to be thriving, attracting more and more prospective tenants. But once the mortgage has been granted and the rental lease secured, which group is better off, buyers or tenants? Estate agency organisation, Home Sale Network surveyed their members to find out.
When asked who pays more per month, the tenant renting a property or the buyer paying a mortgage, nearly three quarters of Home Sale Network survey respondents indicated that it was the tenant. A further 60% stated that the gap between monthly mortgage and monthly rental payments is the biggest it has ever been, with rental rates being higher.
This would suggest that as demand in the rental market increases, so too are rental rates. Encouragingly however, it also would appear that for those who can secure a mortgage – in the long term – buying is cheaper than renting. A staggering 94% of surveyed agents stated that the average rental rate was up to 30% more than the average monthly mortgage payment.
Our own Ian Bythell said, “This is a really hot topic at the moment as we see more people entering the rental market. If you would like to discuss your buying options compared to renting, then contact us today and we will be happy to help. As Home Sale Network’s selected Local Expert, we can help buyers and sellers achieve what they want from the property market.”