26 Apr

Houses for sale in London more 'cost-effective' than rental homes

Houses for sale in London more 'cost-effective' than rental homes

Residents in the capital can save money by investing in houses for sale in London instead of renting.

According to research by the Halifax, those who take out a mortgage to secure property for sale in London will pay 12 per cent less each month than those living in houses to rent in London.

The bank reports that buying a home in the UK is 14 per cent cheaper than renting, with tenants paying almost £100 per month more than mortgage holders.

This is because the average mortgage rate has dropped to 3.59 per cent compared to 5.82 in March 2008, reducing the average monthly mortgage payment by 39 per cent.

Suren Thiru, housing economist at Halifax, commented: "Such a marked decline in mortgage costs has improved affordability for those able to enter the market as well as helping to ease the pressure on existing homeowners' disposable income."

Houses to rent in London have seen their monthly costs rise by 7.3 per cent over the last 12 months, according to the latest LSL Property Services Buy-To-Let index.ADNFCR-1222-ID-800511935-ADNFCR

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