It's Cheaper to Rent Than Buy in Stockport

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12th July 2011

It's Cheaper to Rent Than Buy in Stockport

Latest research from property website Zoopla.co.uk compares the current asking prices and rents of two bedroom flats and interest-only mortgage payments of 5% per annum around the country.

The collection of results provides an optimistic view for the rental market in a number of locations. Being ranked third on the list, it is currently more effective to rent inStockportthan buy with renting working out some 8% cheaper.

TOP 10 LOCATIONS WHERE RENTING BEATS BUYING

Rank	Location	Avg. Asking Price*	Avg. Monthly Rent*	Rent vs Buy**
1	Poole	£243,466	£744	-27%
2	Plymouth	£157,134	£573	-12%
3	Stockport	£145,502	£558	-8%
4	Oldham	£122,716	£477	-7%
5	Bristol	£188,893	£753	-4%
6	Huddersfield	£123,538	£497	-4%
7	Bournemouth	£183,225	£745	-2%
8	Lincoln	£126,470	£519	-1%
9	Swansea	£169,773	£702	-1%
10	Cardiff	£157,610	£656	0%

Source: Zoopla.co.uk (May, 2011)

* based on 2 bedroom flats in May 2011

** % variance between average monthly rent and average monthly cost of 5% p.a. interest-only mortgage

We are continuing to see high demand for properties across all sectors of the market from 1 bed flats and studios to 3 and 4 bed family homes.

Stockport property is largely dominated by demand from families and young professionals due to the wealth of excellent local schools and easy access to ManchesterCitycentre. The rental market is strong and an increasing hotspot for investors. The typical landlord will have one or two properties and tenant demand is strongest for small family homes terraced homes but three bed semis are also in high demand in certain school catchment areas.

The cost of renting has increased over the past 12 months a clear benefit for ‘virgin landlords’ forced to become a landlord. The on-going growth is down to homeowners not achieving their desired asking price so they’re opting to double rent and inherited property.

According to Zoopla:”Almost 750,000 would-be first-time buyers have reluctantly ended up as renters over the past 3 years as a result of being unable to get a mortgage.”

In addition to this, the latest finding from the Rightmove Consumer Confidence Survey suggests “46% of prospective landlords’ state it is their first foray into property as an investment”.

These figures present an excellent and positive outlook for current and prospective landlords. As rents appear to be looming for many tenants and lack of stock, competition is fierce. Tenants offering the highest rents with quality references will secure the homes they want; this is great news for landlords!

Stephen Davis owner of the Heaton Moor branch of Martin & Co commented: “This research provides a snapshot of the market and as such its importance to examine each case on individual merits. In particular, the Zoopla research is based on average asking prices and not on actual selling prices. What is significant is that we are seeing the return of buy-to-let investors, this is good news with a real shortage of good quality housing stock in the Private Rented Sector”.