If you're thinking of climbing the housing ladder in the capital, think again: London has the dubious accolade of being the only UK city where it is cheaper to rent a home than it is to buy one, according to a new study.
Average rent for a two-bedroom flat in the capital is £1,840 a month, compared with the £2,168 a month the average mortgage borrower pays.
Meanwhile, those renting in Glasgow are getting the worst deal: the average rent in the city is £675, almost twice the £377 homeowners are shelling out for their mortgages.
Renters in Bredford, Dundee, Middlesbrough and Coventry are also among those getting the worst deals, with rental premiums of around 50 per cent. In Brighton and Cambridge, though, the difference is just one per cent.
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Among Britain's 50 biggest cities, the average payment for a two-bed is £564, £136.47 less than the average rental price of £700.47.
"These figures demonstrate that renters across Britain are paying a premium compared to homeowners servicing a mortgage," said Lawrence Hall, spokesperson for Zoopla, which did the research.
"Now only London appears a preferable city for renting. However, the recent announcement of a rise in threshold for the stamp duty tax may encourage more first-time buyers on to the market, so it will be interesting to see whether this boost for first time buyers impacts property prices in the near future.”
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