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Are You Paying Too Much to Rent in the UK?

Are you paying too much to Rent in the UK? The UK housing market is experiencing 2006 and 2012). So how can people UK. Which areas are most expensive? Which have the highest yield a 7-year high. Property prices are make sure they're getting the best value for money? climbing fast, but what does that for would-be landlords? Is it safer mean for renters? lets-rent.co.uk has crunched the to stay renting, or start buying? Private renters are the fastest growing numbers (courtesy of Zoopla, June 2014) Take a look below to find answers householders (climbing 58% between to compare renting with buying cross the to all of these questions and more. Renting in the UK Summer 2014 The number of people renting from private landlords is at an Legend (pcm*) all-time high of 3.9 million. £400-550 £550- 750 I £700-850 I £850–1000 I £1000–1 150 £1150 – 1300 £1300 – 1450 I £1450- 1600 I £1600–1750 I £1750-1900 I £1,900 pcm + With that figure set to rise, vwe ask: Which areas in the UK are the cheapest for renters? Based on average monthly rent prices, County Tyrone is the cheapest, at just £423pcm. Unsurprisingly, London tops the list at £2775pcm. South Wales is *pcm= per calender month relatively inexpensive compared with South-East England. Stirling: £2652 pcm* £614 rest of year Aberdeenshire: £1,358 pcm Aberdeenshire is the most *Rentals during the Ryder Cup Golf tournament peak at around £50,000 pcm. expensive Scottish county. Edinburgh: £1,053 pcm After London, Edinburgh is the most expensive capital city. Cardiff: £893pcm Cardiff's average rent is £893pcm, just over the UK average of £824pcm. Isle of Man: £1,673 pcm A popular and picturesque holiday destination. Greater Manchester: London: £2,775 pcm £811 pcm London rental costs Greater Manchester remain the highest in the UK. is the closest to the UK average rent of £824pcm. Buying in the UK Summer 2014 Where should you go for the cheapest houses in Britain? Hint: It's not London... Legend £100-150,000 Based on average asking prices, South Wales might be your best bet, with £150-200,000 Blaenau Gwent at just £109,038. Aberdeenshire is the most expensive I £200- 250,000 I £250- 300,000 I £300- 350,000 Scottish county at £353,054. Meanwhile, The Channel Islands £350 - 400,000 I £400-450,000 I £450 -500,000 top the list at £1.3m. £500-550,000 £550-600,000 With home ownership at a 25-year I £600,000 + low, does anyone fancy a move to Merthyr Tydfil? Aberdeenshire: £353,054 On average, Aberdeenshire is the most expensive county to buy property in Scotland. Edinburgh: £303,401 The cultural hub of Edinburgh is above the UK average of £272,076 North Yorkshire: £273,493 North Yorkshire is the closest to the UK average of £272,076. Blaenau Gwent: £109,038 Blaenau Gwent is the cheapest place to buy a house in the UK. Cardiff: £250,510 Cardiff asking prices average just under the UK average of £272,076. London: £1,039,337 London is the most Channel Islands: expensive place to buy £1,356,905 property on the mainland The Channel Islands is the most expensive place to buy property in the UK. ated Rental Yields based on Summer 2014 Est Legend This is a guide for would-be landlords. One effect of the housing market boom is a decrease in rental yields. I 1-1.5 % I 1.5-2 % I 2-2.5 % I 2.5-3 % So, which UK counties currently offer the best rental yields for buy-to-let properties? This map shows average 3-3.5 % I 3.5-4 % 4-4.5 % 4.5-5 % estimated Net Yield*. I 5-5.5 % I 5.5-6 % Central London remains high, but the 6-6.5 % I 6.5-7 % I 7-7.5 % Greater London average of 2.9% (also the UK average) is brought down by the rising purchase prices and lower rent prices in the commuter areas. I 7.5-8 % I 15 *This is based on annual rent, Aberdeen City: 4.6% Aside from Stirling, the county of Aberdeen holds the best yield in Scotland. minus the average landlord costs (£1532), divided by total cost (including stamp duty and solicitor estimates), multiplied by 100. Stirling: 2.8% - 15% in Summer 2014 Londonderry: 3.6% Londonderry has the best yield in Northern Ireland. Due to the Ryder Cup, high rental prices in Stirling offered a chance for a high yield in the Summer months. Glasgow: 4.4% 7.9% in Summer 2014 During the Glasgow 2014 Commonwealth Games, rental yields jumped to an average of 7.9%. Swansea, Bridgend, West Midlands Areas lacking in new housing developments tend towards a good yield. With fewer houses to purchase, young people choose to rent. Bedfordshire: 7.2% The yield in Bedfordshire is high due to the number of industrial instalments available to rent. To buy or to rent? Summer 2014 Legend Should you be trying to get on the I Buy I Rent property ladder? The most common number of people sharing a home in the UK is 2. If 2 people have a 10% deposit for a house, and qualify for a mortgage, should they take it? Or would paying rent be cheaper than mortgage repayments? (This is a short-term insight and doesn't account for the capital gains expected with ownership, but the results are interesting.) Cardiff, Manchester, Leeds, Sheffield In major student areas, rent is higher on average than expected mortgage Pembrokeshire repayments. This makes and Ceredigion them ideal places to invest in property - particularly buy-to-lets. Coastal towns tend towards higher house prices. With comparatively low rent it is better value in the short term to rent rather than buy. Short-term renting in Surrey is cheaper than the average monthly mortgage repayements on a purchased property. The West Country is Isle of Wight a great location to rent. In Somerset, Devon and Due to its popularity as a retirement destination, Cornwall, rent is below and the lack of new housing developments, house prices are high. The average rent is cheaper than mortgage repayments. average, while average sale prices are above the average for the UK. Whether you're a renter, a first time buyer or a landlord looking for tips, we hope you found this study useful. All data here has been supplied by ®LetsRent Zoopla, and is correct as of June 2014.

Are You Paying Too Much to Rent in the UK?

shared by joe.shervell on Jul 25
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This is a study carried out into the rent prices across Britain, how they compare with housing prices and an estimate of rental yields. We also answer the all-important question: Should you rent, or ...

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Lets Rent

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datadial

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Economy
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