According to the results of the study carried out by Lettingsearch.co.uk renting houses might appear to be cheaper than long term buying.

This property portal claims that on average, a tenant in the private rented sector will eventually pay £11,342 less over a quarter of a century than a borrower on a usual mortgage type.

It has been estimated that the total cost of renting for a 25-year period would amount to £301,175. House purchase costs presuppose that the homeowner remains in a fixed position for the whole period.

Although the total cost of a mortgaged house over 25-year-period would constitute about £312,518, borrowers will also have to pay about £33,385 for maintenance and other costs (which tenants do not usually pay).

Naturally, at the end of the period the mortgage borrower owns their property without additional costs involved, whereas the tenant owns nothing.

However, the property portal notes that the cost of care in retirement age is likely to consume the equity sitting in homeowners’ property.

Phil Calderbank, the property portal’s director, expressed the opinion that with sky-rocketing property prices, the perennial problem over affordability of mortgages, and the possible threat of having to sell your home in the long run in order to to pay for comfortable retirement, it is absolutely logical that growing number of UK citizens make the private rented sector their lifestyle choice.

All the available evidence poits to the fact that UK’s rental sector is gradually turning to a European model of long-term tenancies. The Council of Mortgage Lenders (CML) has informed that in all likelihood there will be a smaller number of homeowners and a larger number of tenants in the future.


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