Abbey National has issued research that the differences between renting and buying is narrowing.In their release they say the costs to buy rather than renting has reduced to an average of £80,250 cheaper over a 25 year period. This gap is now just 24% rather than the 30% it was in 2002.
Our view
Renting is going to become ever more popular given that the cost gap is widening. In addition, as people become more aware that owning can have its downside later in life e.g. Local Authorities not paying for your care if you own assets above £19,500 (see Care Fees Adviser.com), you will see an increase in the disposal of property.
Visit Care Fees Adviser.com for more on care when you are older.Learn more about Mortgages and Property in Mortgage Crazy.com .
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