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Glasgow Buyers Benefit More than those Renting Properties

A new study has found that purchasing a property is more cost-effective in almost half of all UK cities with Glasgow owners benefiting the most according to a recent study.

Property market website, Zoopla analysed the asking price and the rental rates of two bedroom properties and found that in many parts of the country, those who look to buy a property are often saving money. Glasgow was the number one city were buying a property was considerably cheaper than renting over time with Coventry and Birmingham making the top three.

The research from Zoopla found that renters in Glasgow, Coventry and Birmingham could pay more than £100 a month than those with a mortgage.

Perhaps unsurprisingly, Cambridge, London and Brighton were top for cost-effective renting due to the value of property and the availability of housing. In Cambridge, rent was found to be almost £800 below the average mortgage payments.

Lawrence Hall, a spokesman for Zoopla, said: “Once you get past the initial fees that come with a house purchase, such as a deposit and stamp duty, our figures show that it can pay to try and get on the property ladder.

“On top of the enjoyment that can come with owning your property, buyers may also find themselves with more disposable income at the end of the month than those renting their homes.

“Particularly if you’re in Scotland, northern England or in the West Midlands, taking the first step on to the ladder and sacrificing the flexibility of renting can be a much cheaper alternative.”

The research from Zoopla assumed that someone buying a home had a 10% deposit on the property and was paying a 25-year repayment mortgage with an interest rate of 4.5%.

Previous data from Zooplan found that in October 2015, buying was cheaper than renting in just over one-third of cities, indicating that purchasing a property has now become an even greater value.

According to a separate report on the value of properties in major UK cities, housing went up by, on average, 11% in the UK in the last year.

The news from Zoopla comes following another promising study regarding concerning commercial property in Scotland with a 1.9% growth in the final quarter of the year. In terms of all asset types, according to the CBRE, there was a 9.2% return in the previous year.

Purchasing a Property in Glasgow? Contact our team today

If you are interested in buying a property in Glasgow, our team of experts can give you the advice and support you require. Whether you are seeking to purchase a property, are looking for assistance with a home report or are looking to buy in an area of Glasgow, our team of experts can ease the stress and worry that is often associated with the purchase of a house by offering tailored legal advice. To find out how we can help you, contact our team today using our online contact form.