London 'is most renter-friendly spot in UK'

by Sarah Ashcroft

The most renter-friendly conditions in the UK exist in London, where people are betting off taking on a tenancy rather than buying their own home.

New research by Zoopla shows that an individual who rents in the capital will be £82,412 better off after seven years than someone else who bought a property with a ten per cent deposit in place.

What's more, Britons who opt to buy in London with a ten per cent deposit will take some 18 years to be in a stronger position than an equivalent renter, illustrating how becoming a tenant can be a good thing in some parts of the country.

Of course, there are some places where buying a home is a more lucrative move a lot sooner, such as Aberdeen, Dundee, Glasgow, Cambridge and Edinburgh. But in some towns and cities, people are best advised to rent their dwelling.

As well as London, this is the case in Bournemouth, which finished second on the list. The Dorset town's property comes with an average asking price of £380,206 and a typical rent of £1,024.

It would therefore take 22 years for someone who buys with a ten per cent deposit to their name to be better off in comparison to a tenant. And after seven years, a renter would have £30,719 more in the bank than someone who has purchased a property.

Lawrence Hall of Zoopla said: "It is important to remember that whilst renters may be better off in the short to medium term in some areas of the country, buyers are making a long-term investment."

He went on to suggest that London is still the "holy grail" of property investment, even though it typically proves more beneficial to rent a home.

Such a finding suggests that London is a great place not only for those looking to rent somewhere to live, but also would-be landlords hoping to add to their property portfolios.ADNFCR-1645-ID-801693193-ADNFCR

Published on: February 13, 2014

Did you like this article? Share it!

Tenancy Agreement - Unfurnished

Unfurnished tenancy agreement advert
  • Solicitor approved
  • Expert guidance notes
  • PDF format
  • Download now

Read More