Anyone got a graph?

[andrewducker]

Looking for something comparing the cost of renting to buying over the last few years.

Something like this, but for the UK.

Anyone?

Comments

[call-waiting.livejournal.com]

"Price per rent"? What's 'price' in that analysis? Average mortgage repayments? Mortgage repayments for the average newly purchased property?

At the mortgages and flats we're looking at, the ratio is hanging round about two-and-a-bit, which is, amusingly, what we'd end up paying of a flat's worth on the mortgage: twice the purchase price.

When I had my flat in Cambridge, the ratio was damn close to one (I paid about £650 a month in mortgage; the same flat would probably have cost me about £600 to rent).

[channelpenguin.livejournal.com]

no graph but:

Current figures for my flat in Guildford.
rent 700
mortgage 1089

1994 Stoke on trent (identical 3 bed houses)
rent 250
mortgage 250

and it will depend where. House prices have not (yet) gone silly in the Northeast, Wales, NI or most of the midlands)

[channelpenguin.livejournal.com]

the houses in Stoke were going for about 40 then,IIRC, going for 70ish now.

[andrewducker]

Yeah, monthly price for a mortgage on the same property, or something like it, I think.

I'm currently seriously considering selling my flat, putting the cash into hgh-interest savings, and renting until the price of flats comes down.

[channelpenguin.livejournal.com]

I spent 13 years waiting for the prices to come down before concluding that they just weren't. People just don't seem to be put off by big mortgages any more - it's just a fact of life.

Plus savings rates were DIRE for such a long time. They are only barely better than dire now.

Make sure you do ALL the calculations properly.

I consider my flat to be 'a unit of housing' that will be swappable for whatever it is if and when I choose to do so. Prices are still rising so quickly that the cost of the loan for the year or so is much less then the price rise.

But I am planning on bogging off on a boat and renting it out. Only reason I'm buying at all is that I can afford to, I'm planning on a long period of not working, and I don't reckon house prices in 35 years time will be less than now and I need somewhere to live when I am old.

[surliminal.livejournal.com]

She's right. Tempting as it is , prices in Edinburgh simply won't go down - there is too much demand, too much buy to let and too little good property available or buildable. you'll be marooned paying rent, having a landlord and not gaining an asset for the rest of your days - or more accurately, till your parents die:(

[surliminal.livejournal.com]

I know - it's mad. Whereas in Soton/Winchester rents are higher than mortgages as far as I can see because of estate agenst and a lack of suitable letting property - sigh..