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Buying in London 42% more expensive than renting

Mortgage costs across the capital are now 42% more than average rents in the city, meaning it’s becoming increasingly hard to buy in London.

Costs are especially high in the more affluent boroughs of inner London, where mortgage payments are roughly 66% or £1,232 more per month than rental costs.

Greenwich, a popular borough for investors and first-time buyers, has mortgage costs averaging at a more reasonable rate of 34% or £563 more per month than rent.

Tim Darwall-Smith, director at SBA Property Management, said: “London’s property market has always been challenging for prospective buyers, however in recent years rising house prices and borrowing costs have pushed homeownership even further out of reach for many people. A London deposit, along with other costs like stamp duty and legal fees, can take years of saving for – but as the research shows, the cost of buying in the capital is still significantly higher than other parts of the country even after putting down a deposit.”

While Londoners typically spend 42% more on mortgage payments than rent, in Manchester monthly mortgage costs are only around 16% more per month. In Bristol, the monthly cost of a mortgage is 18% higher than rent. Elsewhere, mortgage costs in Leeds are roughly 21% higher than the average price of rent, while in Liverpool and Birmingham the rates are 29% and 31% respectively.

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