Renting costs more than buying in 47 out of 50 cities

Buying property is now cheaper than renting in 47 of the 50 largest towns and cities across the country, according to the latest statistics from Zoopla.

The figure is a significant increase on this time last year, when it was better to buy than rent in 40 out of the same 50 towns.

Since then, rising rental costs mean it now costs on average 15% more to rent each month than to pay a mortgage.

To compare the cost of buying versus renting, Zoopla analysed the current asking prices and rents of over 78,000 two-bedroom flats currently on the market, comparing the rental cost to the cost of ownership based on servicing an interest-only mortgage at 5% pa.

Swansea, Plymouth and Bournemouth are the only three locations on the list of 50 towns where it remains cheaper to rent than buy today.

In contrast, Milton Keynes comes top of the list of locations where buying beats renting and where renting is 36% more expensive than owning, leaving renters £2,436 per year worse off on average.

Warrington and Walsall also feature high on the list of locations where it is cheaper to buy than rent, at 33% and 32% rental premiums respectively.  

In London, where the average asking price for two-bedroom flats currently stands at £442,036, buying trumps renting by a big margin. With average monthly rents in the capital at £2,416, renting is 31% more expensive than the cost of ownership, leaving renters paying an average extra £6,888 annually compared to owners.