Manchester Property News
The Buy v Rent equation
For a buyer with a 25% deposit, the monthly mortgage payment in all areas remains lower than the equivalent monthly rent for a 2-bed flat (2-year fixed rate mortgage, over 25 years).
However, for those with a 10% deposit (90% LtV), increased mortgage rates in March mean that in London, the monthly rent would be 9% less than mortgage payments, and there is virtually no difference in the South West, South East and East.
For first-time buyers, getting together a deposit is still the most significant barrier to home ownership. Maintenance costs and giving up flexibility are other considerations.
As interest rates continue to rise, the monthly cost gap is likely to narrow further in all regions and this may see more 'would-be' first-time buyers evaluating their housing options. Source: Dataloft, Land Registry, DRMA, Bank of England
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About The Blog
This Blog looks at what is happening in Manchester, the property market, events and community news along with investment ideas and tips for those loosing to invest in the area.
Tom Simper - Editor
Manchester is one of the fastest growing markets in the country. If you need any assistance buying, selling or letting properties in the area we have over 30 years of experience and local knowledge to help.
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