The property market has changed dramatically in this country in recent years, so much so that it is now cheaper to own a home and make monthly mortgage payments than to pay rent. This is now true in every part of the UK.
This may come as welcomed news in a country where there is almost a national obsession with owning property. The same can not be said for many of our cousins on the continent where home ownership is not nearly as sought after.
So how have industry insiders come to the conclusion that it is now cheaper to buy than to rent? Well that figure is arrived at due to the average monthly rent in the UK being now £995 per household, compared to the average monthly mortgage repayment being £805 for first-time buyers. This figure is based on the assumption that the first time buyer has a deposit that is 21% of the homes total cost and they therefor have a mortgage which is 79% of the overall value of the home.
However these calculations should be taken somewhat lightly as they only really look at mortgage payments and do not factor in other costs of home-ownership, such as repairs and last minute replacements of crucial items such as boilers.
The South West of England is where home owners enjoy the most significant advantage, in this area you can save up to £192 a month by owning a home and repaying your mortgage, rather than renting. The difference is significant in London also, with tenants paying £179 extra monthly for a rental property. The East of England however, has a narrower gap when it comes to the difference between renters and buyers. You only save on average £2 a month as a home owner.
It is often the opposite of financial pressure that people find themselves under when they buy homes, plus once the mortgage is repaid, home owners have a valuable asset at their disposal.
At Waltham Estates, we recognise that buyers want to understand all they can about the local community before they make their real estate purchase. We pride ourselves on our knowledge of the local area. Call us today for more information on properties in Walthamstow and what it’s like to live in this vibrant community.