{"id":1073,"date":"2013-04-12T09:11:58","date_gmt":"2013-04-12T09:11:58","guid":{"rendered":"https:\/\/www.citylets.co.uk\/blog\/?p=1073"},"modified":"2013-05-08T14:25:26","modified_gmt":"2013-05-08T14:25:26","slug":"time-to-bring-a-reality-check-to-the-rent-v-buy-stories","status":"publish","type":"post","link":"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/","title":{"rendered":"Time to bring a reality check to the Rent v Buy stories"},"content":{"rendered":"

As the housing market continues to flat line there are ever more headlines appearing in the mainstream media that suggest buying can be more affordable than renting. \u00a0Most articles seem to be based upon overly simplistic views of the costs \u00a0and ignore integral components of any move; house deposits, stamp duty, conveyancing costs. \u00a0Some recent releases compare average monthly rents with the cost of servicing an\u00a0<\/span>interest only mortgage for 100%\u00a0of the value of an equivalent property.<\/p>\n

The 100% interest only mortgage has been extinct for several years now, which is why it is so surprising it is still used as basis for\u00a0comparison.\u00a0Even with a 90% loan to value mortgage, the average flat in Scotland still requires a deposit of over \u00a311,600 and mortgages with high LTVs usually have higher arrangement fees.\u00a0 Add on the 1% stamp duty due on property over \u00a3125,000 and conveyancing costs in the order of \u00a3750 and the true costs of buying are far higher than many of the recent headlines would lead you to believe.<\/p>\n\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n\n\n
\n

Monthly Rent v Mortgage Payments for Flats<\/strong><\/h4>\n<\/td>\n

\u00a0<\/strong><\/td>\n<\/tr>\n
Q4 2012<\/strong><\/td>\nAvg. Buy Price<\/strong><\/td>\nMonthly Rent<\/strong><\/td>\nMortgage Payments*<\/strong><\/td>\n<\/tr>\n
Aberdeen City<\/td>\n\u00a3141,065<\/td>\n\u00a3796<\/td>\n\u00a3751<\/td>\n<\/tr>\n
Dundee City<\/td>\n\u00a398,023<\/td>\n\u00a3474<\/td>\n\u00a3522<\/td>\n<\/tr>\n
Edinburgh, City of<\/td>\n\u00a3191,154<\/td>\n\u00a3730<\/td>\n\u00a31,017<\/td>\n<\/tr>\n
Glasgow City<\/td>\n\u00a3107,494<\/td>\n\u00a3588<\/td>\n\u00a3574<\/td>\n<\/tr>\n
Scotland<\/strong><\/td>\n\u00a3116,194<\/strong><\/td>\n\u00a3620<\/strong><\/td>\n\u00a3620<\/strong><\/td>\n<\/tr>\n
* assumes 90% LTV repayment mortgage at 5% interest over 25 years<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

If we are to do a simple\u00a0comparison of\u00a0buy versus rent costs in Scotland we can take the average price of all flats sold in Scotland, which\u00a0in\u00a0Q4 2012\u00a0were \u00a3116,194\u00a0according to\u00a0Registers of Scotland. \u00a0 Based on a 90% LTV repayment mortgage at 5% over 25 years, the monthly mortgage\u00a0payments would be \u00a3620 and coincidentally\u00a0average monthly rents in same period were\u00a0also \u00a3620. \u00a0However, this is still a very crude methodology as we\u00a0have not included all the additional costs of buying or renting. \u00a0It becomes obvious that at the city level, there are considerable\u00a0differences between\u00a0renting\u00a0costs and\u00a0mortgage costs\u00a0as the table shows. These\u00a0differences\u00a0do of course\u00a0give a basic indication of the variable yields on offer in the cities though it is only by looking at the local level that\u00a0meaningful\u00a0yield information can be determined -something we will be doing in\u00a0\u00a0forthcoming reports.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

As the housing market continues to flat line there are ever more headlines appearing in the mainstream media that suggest buying can be more affordable than renting. \u00a0Most articles seem to be based upon overly simplistic views of the costs \u00a0and ignore integral components of any move; house deposits, stamp duty, conveyancing costs. \u00a0Some recent …<\/p>\n","protected":false},"author":1,"featured_media":1074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1,111],"tags":[106],"class_list":["post-1073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","category-research-2","tag-rent-v-buy","property","research-2"],"yoast_head":"\r\nTime to bring a reality check to the Rent v Buy stories - Citylets blog<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Time to bring a reality check to the Rent v Buy stories - Citylets blog\" \/>\r\n<meta property=\"og:description\" content=\"As the housing market continues to flat line there are ever more headlines appearing in the mainstream media that suggest buying can be more affordable than renting. \u00a0Most articles seem to be based upon overly simplistic views of the costs \u00a0and ignore integral components of any move; house deposits, stamp duty, conveyancing costs. \u00a0Some recent ...\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Citylets blog\" \/>\r\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/citylets\/\" \/>\r\n<meta property=\"article:published_time\" content=\"2013-04-12T09:11:58+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2013-05-08T14:25:26+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2013\/03\/buy-vs-rent.png\" \/>\r\n\t<meta property=\"og:image:width\" content=\"800\" \/>\r\n\t<meta property=\"og:image:height\" content=\"600\" \/>\r\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\r\n<meta name=\"author\" content=\"admin\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:creator\" content=\"@Citylets\" \/>\r\n<meta name=\"twitter:site\" content=\"@Citylets\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/\",\"url\":\"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/\",\"name\":\"Time to bring a reality check to the Rent v Buy stories - Citylets blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.citylets.co.uk\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2013\/03\/buy-vs-rent.png\",\"datePublished\":\"2013-04-12T09:11:58+00:00\",\"dateModified\":\"2013-05-08T14:25:26+00:00\",\"author\":{\"@id\":\"https:\/\/www.citylets.co.uk\/blog\/#\/schema\/person\/f63c94bc220848b291230def7f6966d0\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/#primaryimage\",\"url\":\"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2013\/03\/buy-vs-rent.png\",\"contentUrl\":\"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2013\/03\/buy-vs-rent.png\",\"width\":800,\"height\":600},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.citylets.co.uk\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Time to bring a reality check to the Rent v Buy stories\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.citylets.co.uk\/blog\/#website\",\"url\":\"https:\/\/www.citylets.co.uk\/blog\/\",\"name\":\"Citylets blog\",\"description\":\"Home of Scottish Letting\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.citylets.co.uk\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.citylets.co.uk\/blog\/#\/schema\/person\/f63c94bc220848b291230def7f6966d0\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.citylets.co.uk\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/bbb6ab7969d932599a8f5b81401280f75ccd6aada91a5a1450237d6d75ab945b?s=96&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/bbb6ab7969d932599a8f5b81401280f75ccd6aada91a5a1450237d6d75ab945b?s=96&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"https:\/\/www.citylets.co.uk\"],\"url\":\"https:\/\/www.citylets.co.uk\/blog\/author\/admin\/\"}]}<\/script>\r\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Time to bring a reality check to the Rent v Buy stories - Citylets blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/","og_locale":"en_US","og_type":"article","og_title":"Time to bring a reality check to the Rent v Buy stories - Citylets blog","og_description":"As the housing market continues to flat line there are ever more headlines appearing in the mainstream media that suggest buying can be more affordable than renting. \u00a0Most articles seem to be based upon overly simplistic views of the costs \u00a0and ignore integral components of any move; house deposits, stamp duty, conveyancing costs. \u00a0Some recent ...","og_url":"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/","og_site_name":"Citylets blog","article_publisher":"https:\/\/www.facebook.com\/citylets\/","article_published_time":"2013-04-12T09:11:58+00:00","article_modified_time":"2013-05-08T14:25:26+00:00","og_image":[{"width":800,"height":600,"url":"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2013\/03\/buy-vs-rent.png","type":"image\/png"}],"author":"admin","twitter_card":"summary_large_image","twitter_creator":"@Citylets","twitter_site":"@Citylets","twitter_misc":{"Written by":"admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/","url":"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/","name":"Time to bring a reality check to the Rent v Buy stories - Citylets blog","isPartOf":{"@id":"https:\/\/www.citylets.co.uk\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/#primaryimage"},"image":{"@id":"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/#primaryimage"},"thumbnailUrl":"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2013\/03\/buy-vs-rent.png","datePublished":"2013-04-12T09:11:58+00:00","dateModified":"2013-05-08T14:25:26+00:00","author":{"@id":"https:\/\/www.citylets.co.uk\/blog\/#\/schema\/person\/f63c94bc220848b291230def7f6966d0"},"breadcrumb":{"@id":"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/#primaryimage","url":"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2013\/03\/buy-vs-rent.png","contentUrl":"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2013\/03\/buy-vs-rent.png","width":800,"height":600},{"@type":"BreadcrumbList","@id":"https:\/\/www.citylets.co.uk\/blog\/time-to-bring-a-reality-check-to-the-rent-v-buy-stories\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.citylets.co.uk\/blog\/"},{"@type":"ListItem","position":2,"name":"Time to bring a reality check to the Rent v Buy stories"}]},{"@type":"WebSite","@id":"https:\/\/www.citylets.co.uk\/blog\/#website","url":"https:\/\/www.citylets.co.uk\/blog\/","name":"Citylets blog","description":"Home of Scottish Letting","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.citylets.co.uk\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.citylets.co.uk\/blog\/#\/schema\/person\/f63c94bc220848b291230def7f6966d0","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.citylets.co.uk\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/bbb6ab7969d932599a8f5b81401280f75ccd6aada91a5a1450237d6d75ab945b?s=96&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/bbb6ab7969d932599a8f5b81401280f75ccd6aada91a5a1450237d6d75ab945b?s=96&r=g","caption":"admin"},"sameAs":["https:\/\/www.citylets.co.uk"],"url":"https:\/\/www.citylets.co.uk\/blog\/author\/admin\/"}]}},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2013\/03\/buy-vs-rent.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.citylets.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.citylets.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.citylets.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.citylets.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.citylets.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=1073"}],"version-history":[{"count":28,"href":"https:\/\/www.citylets.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1073\/revisions"}],"predecessor-version":[{"id":1176,"href":"https:\/\/www.citylets.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1073\/revisions\/1176"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.citylets.co.uk\/blog\/wp-json\/wp\/v2\/media\/1074"}],"wp:attachment":[{"href":"https:\/\/www.citylets.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=1073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.citylets.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=1073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.citylets.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=1073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}