Research from FPDSavills reveals that it is now cheaper to rent rather than buy in over half of London's boroughs. Renting is cheaper in the more expensive boroughs where house prices are highest, but in many parts of outer London where house prices are lower buying is still cheaper than renting.
Savills says that the high house price growth of the last few years has driven up buying costs but this has been largely offset by falling interest rates. However, whilst the cost of buying has remained broadly static, rental values have fallen as a result of a rising supply of stock for rent.
Head of residential research Richard Donnell says: “The results of the analysis highlights two conflicting forces at work in the London housing market.”