Paying a mortgage is now cheaper than renting in most UK cities

Buying a home is cheaper on a monthly basis than renting one in 60% of British cities, according to Zoopla, up by a quarter in six months. Back in April, when the data was previously analysed, it was cheaper to rent in just under half the cities.

The property listings website looked at the average monthly rent on a two-bedroom home and what it would typically cost to service a mortgage on the same property in the 50 biggest cities of the UK.

Glasgow was the city where rents were higher than mortgage repayments, with a "rental premium" of 28%. The median monthly rent on a two-bed is £596 against a mortgage repayment, assuming a 10% deposit, of £450.

London was best for renters, with a "buyer's premium" of 44%. The median rent is £2,009 against a mortgage repayment of £3,127. House prices have risen sharply in the city in recent years, fuelled by an acute shortage of supply, shutting many aspiring homeowners out of the market.

"Buying a property is a costly process, but once you get past the initial fees, it can – as our data shows – prove a more economical option on a monthly basis," said Lawrence Hall, a spokesperson for Zoopla.

"Although large parts of Britain remain unaffordable for those looking to take their first steps onto or another step up the property ladder, these latest figures tell an encouraging story.

"Whereas back in April it was cheaper to service a monthly mortgage than pay a rental fee in just under half of Britain's biggest cities, buyers are now offered better value in nearly two thirds of these locations."

But on price alone, renters still pay less than buyers servicing mortgages across the country, with an average saving was £40 a month.

Top 10 locations where buying beats renting

Top 10 locations where renting beats buying

Source: Zoopla