This article shouldn’t really be shocking, but it does represent a fairly dramatic change.
For the first time in 6 years, with house price inflation having gone up faster than rental inflation, it is now potentially cheaper to rent than buying a home.
Obviously there are a lot of factors at play here, and while it is good that rental income is not even more than a mortgage for potential first-time buyers, the fact that house prices are increasing so fast can’t be great news. It isn’t as if rental costs are decreasing.
It is also true that the difference between renting and mortgage values still doesn’t leave a lot of room for savings.
Have you experienced any effects of this recently?