Will renting soon cost less than buying?

Research carried out by the Hometrack has revealed that, in some areas, it was possible to rent a property at approximately two thirds the cost of buying a two or three bedroom home on a 100% mortgage.

Previously it was thought that renting was an expensive option, but no longer.  Professor Steve Wilcox of York University, who carried out the analysis found that in a number of areas people could afford to rent but not buy.

He went on to explain:  “Not too long ago, there was little difference between the costs of buying and renting, but while house prices tripled in the years since 1994, private sectors rents only increased in line with earnings, and the costs of renting have as a result fallen relative to the costs of buying.

As a result the private rented sector is seeing renewed investment after nearly a century of decline.