Buying now beats renting in 47 of the 50 largest towns across the country, according to the latest statistics from the property website Zoopla.co.uk.

Their latest figures show a significant increase from 12 months ago, when it was better to buy than to rent in only 40 out of the same 50 towns. The continued mortgage drought and rising demand for rental properties has led to renting now costing 15% more on average than buying - up from only 10% more recorded at this same time last year.

To compare the cost of buying versus renting, Zoopla analysed the current asking prices and rents of over 78,000 two-bedroom flats currently on the market, comparing the rental cost to the cost of ownership based on servicing an interest-only mortgage at 5% p.a.

Swansea , Plymouth and Bournemouth are the only three locations on the list of fifty towns where it remains cheaper to rent than buy today. In contrast, Milton Keynes comes top of the list of locations where buying beats renting and where renting is 36% more expensive than owning, leaving renters there some £2,436 per year worse off on average. Warrington and Walsall also feature highly on the list of locations where it is cheaper to buy than rent, at 33% and 32% rental premiums respectively.

In London, where Zoopla state that the average asking price for 2-bedroom flats currently stands at £442,036, buying also trumps renting by a big margin. With average monthly rents in the capital at £2,416, renting is 31% more expensive than the cost of ownership, leaving renters paying an extra £6,888 annually on average compared to owners.

Nicholas Leeming, business development director of Zoopla.co.uk, commented: “Although buying may be more cost-effective than ever compared to renting, many potential buyers aren’t able to take advantage because they can’t access mortgage finance. The shortage of financing, especially to first time buyers, has pushed demand for rental property through the roof. But for those lucky enough to be in a position to get a mortgage, there may never have been a better time to buy.”

Rank


City


Average Monthly Rent
2-bed flats


Average Asking Price
2-bed flats


% Difference renting
compared to buying


Rent or buy

1


Milton Keynes


£756


£133,217


36%


BUY

2


Warrington


£601


£108,604


33%


BUY

3


Walsall


£507


£92,031


32%


BUY

4


Coventry


£582


£105,850


32%


BUY

5


Northampton


£587


£106,925


32%


BUY

6


York


£866


£158,127


31%


BUY

7


London


£2,416


£442,036


31%


BUY

8


Wolverhapmton


£505


£92,590


31%


BUY

9


Swindon


£597


£110,574


30%


BUY

10


Birmingham


£706


£130,937


29%


BUY