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News: Renting cheaper than Help to Buy

Sat, 16 Nov 13

PricedOut’s research argues that even with the flagship programme, which offers a taxpayer-backed guarantee to lenders to offer 95 per cent mortgages, it is now more affordable to rent a property in every London borough except for Barking and Dagenham.

Indeed, over the last year prices in the UK capital have soared 9.4 per cent, with climbing values tipping Ealing, Southwark, Lewisham and Greenwich all into the “renting cheaper than buying” category. In 23 of 32 boroughs, renting costs at least 10 per cent less, with a 95 per cent mortgage at a rate of 4.99 per cent on a home worth £256,000 costing £1,437  a month compared to an average rent of £1,141.

The gap is smaller elsewhere in England and Wales, but even in the North East region, PricedOut’s research suggests a Help to Buy purchase is still more expensive.

PricedOut’s spokesman, Dan Wilson Craw, told The Guardian: "The millions of us renting want to be able to buy our own home eventually but, with house prices too high, all David Cameron and George Osborne have offered us is a Ponzi scheme to pull the wool over our eyes and help inflate the value of their London property portfolios even further. Continuing to rent and save appears to be the better option for most tenants.”

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