Property news roundup: Drop in cost of renting compared to buying

Plus, thirtysomething homeownership, renting and cleaning, and mortgage hunters are getting younger

Rising house prices mean that the cost of renting relative to buying has fallen, according to Countrywide Residential Lettings.

Its figures suggest that in 2014, the average tenant pays 93p in rent for every £1 spent on mortgage repayments by a homeowner able to put down a 10% deposit. This is a decrease of 3p from 96p a year ago.

The report shows that house prices rose more quickly than rents over the past 12 months across 87 per cent of England, Scotland and Wales.

The 13 per cent of areas where the cost of renting rose relative to buying were almost all in South Wales and the North East of England. 

Iin London the average tenant spends 86p on rent, down from 93p a year ago, for every £1 a homeowner spent on a mortgage. It is now cheaper to rent than buy in 30 out of the 33 London boroughs, up from 25 in 2013.

Nick Dunning, Group Commercial Director, Countrywide plc, said: "Home ownership has long been part of the British psyche. However, for many households, particularly in the short to medium term, home ownership doesn’t always make sense financially or otherwise.

"As house prices rise, renting increasingly allows people to live in areas they would otherwise be unable to afford to buy. In more expensive cities, such as London, the cost of renting in more central areas can be just half the cost of buying. The result is that in the most central areas of London, and many other global cities, over half the population now rent.

"While homeowners can benefit from increases to the value of their home over the long term, homeownership itself doesn’t automatically equate to large financial returns. The money saved by renting can be invested in other ways. The reality is that tenants, far from being priced out of the market in the long term, have benefitted from the flexibility this growing and increasingly professional sector offers."

Drop in average age of mortgage hunters

The average age of buyers seeking a mortgage during April dipped below 37 (to 36.9) for the first time since September 2010.

The figures from the Mortgage Advice Bureau come a fortnight after the introduction of  the Mortgage Market Review (MMR).

Remortgage application numbers dropped by 12 per cent in April, while purchase applications fell by seven per cent. However, the numbers of both were still 29 per cent higher than in April 2013.

Cleaning problems

Cleaning is the main cause of disputes between tenants and landlords and the problem is getting worse, according to the Association of Independent Inventory Clerks. 

The annual review by the Tenancy Deposit Scheme shows that the most common cause of complaint is about cleaning, increasing from 49 per cent in 2009 to 56 per cent in 2013, the highest level since 2007.

"The main problems are dirty ovens and fridges, stains and marks on carpeting and flooring, bathrooms which have not been cleaned for months, and pet hair and excrement on floors, furniture and soft furnishings," said Pat Barber, Chair of the Association of the AIIC.

Homes and the under-35s

Analysis by Lucian Cook at Savills shows that those aged under 35 are having a tough time finding a home.

His figures indicated that in three quarters of local authorities, first time buyers have to earn above the average full time income for the area to afford to buy, while in a quarter of areas they need to earn at least 50 per cent above that figure.

In addition to London, he points to affordability issues in the more expensive towns of the Midlands and the North, including Stratford upon Avon and York, and Maidstone and Exeter in the South.

Overall, his analysis suggests that first time buyers now need an income of more than£50,000 to buy in Cambridge, Chichester, Guildford, Horsham, Oxford, Winchester and Woking, and more than £40,000 to buy in Basingstoke, Canterbury, Lewes, Reading and Slough.

"Younger households will undoubtedly rent for longer and enter the housing market later in life, possibly when they can pool two incomes or for the lucky ones, take advantage of the housing equity built up by parents and grandparents," he said. "As a result, government policy needs to become less fixated on home ownership and look to substantially increase the supply of good quality rental accommodation."

Discover more property articles at Homes and Property
Voices
A Russian hunter at the Medved bear-hunting lodge in Siberia
Save the tigerWildlife charities turn to those who kill animals to help save them
News
Davis says: 'My career has been about filling a niche - there were fewer short actors and fewer roles – but now I'm being offered all kinds of things'
PeopleWarwick Davis on Ricky Gervais, Harry Potter and his perfect role
News
i100
Sport
Frank Lampard will pass Billy Wright and equal Bobby Charton’s caps tally of 106 caps against
sportFormer Chelsea midfielder in Etihad stopgap before New York contract
PROMOTED VIDEO
News
Netherlands' goalkeeper Tim Krul fails to make a save from Costa Rica's midfielder Celso Borges during a penalty shoot-out in the quarter-final between Netherlands and Costa Rica during the 2014 FIFA World Cup
newsGoalkeepers suffer from 'gambler’s fallacy' during shoot-outs
News
people
Arts and Entertainment
Standing the test of time: Michael J Fox and Christopher Lloyd in 'Back to the Future'
filmReview: A week late, Secret Cinema arrives as interactive screening goes Back to the Future
Extras
indybest
News
i100
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

(Senior) IT Support Engineer - 1st-3rd Line Support

£40000 per annum: Ashdown Group: A successful IT service provider that has bee...

Wind Farm Civil Design Engineer

£55000 - £65000 Per Annum: The Green Recruitment Company: The Green Recruitmen...

Principal Marine Mechanical Engineer

£60000 - £70000 Per Annum: The Green Recruitment Company: The Green Recruitmen...

Principle Geotechnical Engineer

£55000 - £65000 Per Annum: The Green Recruitment Company: The Green Recruitmen...

Day In a Page

Save the Tiger: Meet the hunters tasked with protecting Russia's rare Amur tiger

Hunters protect Russia's rare Amur tiger

In an unusual move, wildlife charities have enlisted those who kill animals to help save them. Oliver Poole travels to Siberia to investigate
Transfers: How has your club fared in summer sales?

How has your club fared in summer sales?

Who have bagged the bargain buys and who have landed the giant turkeys
Warwick Davis: The British actor on Ricky Gervais, how the Harry Potter set became his office, and why he'd like to play a spy

'I'm a realist; I know how hard this business is'

Warwick Davis on Ricky Gervais, Harry Potter and his perfect role
The best swim shorts for men: Bag yourself the perfect pair and make a splash this summer

The best swim shorts for men

Bag yourself the perfect pair and make a splash this summer
Has Ukip’s Glastonbury branch really been possessed by the devil?

Has Ukip’s Glastonbury branch really been possessed by the devil?

Meet the couple blamed for bringing Lucifer into local politics
Dress the Gaza situation up all you like, but the truth hurts

Robert Fisk on Gaza conflict

Dress the situation up all you like, but the truth hurts
Save the tiger: Tiger, tiger burning less brightly as numbers plummet

Tiger, tiger burning less brightly

When William Blake wrote his famous poem there were probably more than 100,000 tigers in the wild. These days they probably number around 3,200
5 News's Andy Bell retraces his grandfather's steps on the First World War battlefields

In grandfather's footsteps

5 News's political editor Andy Bell only knows his grandfather from the compelling diary he kept during WWI. But when he returned to the killing fields where Edwin Vaughan suffered so much, his ancestor came to life
Lifestyle guru Martha Stewart reveals she has flying robot ... to take photos of her farm

Martha Stewart has flying robot

The lifestyle guru used the drone to get a bird's eye view her 153-acre farm in Bedford, New York
Former Labour minister Meg Hillier has demanded 'pootling lanes' for women cyclists

Do women cyclists need 'pootling lanes'?

Simon Usborne (who's more of a hurtler) explains why winning the space race is key to happy riding
A tale of two presidents: George W Bush downs his paintbrush to pen father’s life story

A tale of two presidents

George W Bush downs his paintbrush to pen father’s life story
Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover

The dining car makes a comeback

Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover
Gallery rage: How are institutions tackling the discomfort of overcrowding this summer?

Gallery rage

How are institutions tackling the discomfort of overcrowding this summer?
Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players

Eye on the prize

Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players
Women's rugby: Tamara Taylor adds fuel to the ire in quest to land World Cup

Women's rugby

Tamara Taylor adds fuel to the ire in quest to land World Cup