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Wad

Still Cheaper To Rent For Ftbs Than Buy

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Sky are running a report along their strapline this morning quoting a report by Propertyfinder.com saying that FTBs still find it cheaper to buy than rent.

It is being covered in the press as well.

http://www.google.com/hostednews/ukpress/a...mZ7ro8LMuga9MSQ

http://business.timesonline.co.uk/tol/busi...icle5408903.ece

I cannot find the study on www.propertyfinder.com but I am in agreement with the findings that an FTB is still priced out and until mortgage rates drop (and the amount of deposit required drops) then FTBs will not come in to the market.

I am a lot older than the average FTB with a bigger house but I currently rent a large house at £2000 p.c.m. Assuming my house could be bought for £500k and I could get a 100% mortgage and that the the cost of insurance and mantaining the property is equal to 3 months rent the cost of mortgage would be £17,500 at a 3.5% base rate tracker rate on 100% of the property value. This is slightly less than the net rent of £18,000.

Unfortunately, I could not buy my house for £500k - it would come on the market at £600k so we have about a 15% drop to go before the cost of mortgage is definitely less than renting.

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Sky are running a report along their strapline this morning quoting a report by Propertyfinder.com saying that FTBs still find it cheaper to buy than rent.

It is being covered in the press as well.

http://www.google.com/hostednews/ukpress/a...mZ7ro8LMuga9MSQ

http://business.timesonline.co.uk/tol/busi...icle5408903.ece

I cannot find the study on www.propertyfinder.com but I am in agreement with the findings that an FTB is still priced out and until mortgage rates drop (and the amount of deposit required drops) then FTBs will not come in to the market.

I am a lot older than the average FTB with a bigger house but I currently rent a large house at £2000 p.c.m. Assuming my house could be bought for £500k and I could get a 100% mortgage and that the the cost of insurance and mantaining the property is equal to 3 months rent the cost of mortgage would be £17,500 at a 3.5% base rate tracker rate on 100% of the property value. This is slightly less than the net rent of £18,000.

Unfortunately, I could not buy my house for £500k - it would come on the market at £600k so we have about a 15% drop to go before the cost of mortgage is definitely less than renting.

How many FTBs can find 5%, let alone 20-40%

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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