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Buying And Renting Gap Highest In London

Homebuyers can save a significant amount of money by looking for properties for sale in Hackney and getting on the property ladder, as opposed to staying in rented accommodation.

According to Halifax’s latest Buying vs Renting Review, there is an 18 per cent gap between the cost of renting a home in Greater London and paying the mortgage on one. This amounts to £3,727 a year, at an extra monthly cost of £311 for renters.

This is not the case all over the country, however, as the gap is just three per cent for the whole UK, with renters spending an average of £227 a year more than homeowners on a national scale.

Managing director of Halifax Russell Galley even noted the gap is “at its smallest margin for ten years”, but there are a lot of variations when it comes to regions across Britain.

“While Londoners stand to save the most from home ownership compared to renting, buyers in the south-east and south-west of England and north of the border in Scotland are also reaping the benefits. Buyers in two-thirds of UK regions are saving upwards of £1,000 a year from living in a home they own,” Mr Galley stated.

Indeed, property owners in Greater London typically spend £1,378 on monthly mortgage payments for a three-bed home. However, renters in the same area spend on average £1,689 for an equivalent property.

This demonstrates yet another advantage of saving up for a deposit and getting keys to your own place.

Those looking for a home to buy in Hackney might be tempted by a new-build, as these modern residences now account for nearly a quarter (23 per cent) of properties on the market, and the trend is continuing to rise. In fact, the number of new-build developments listed in Hackney rose by 3.1 per cent between the third and fourth quarter last year.