In London the gap is even more pronounced. The average rent for a prime property in the capital is £3,943 compared to an average mortgage cost of £4,339.
The Prime Rental Index also shows that renting a prime property is likely to get even more affordable in the coming months – following two years of steady growth for the UK prime rental market, asking prices have now fallen to a ten month low, and are £40 a month lower than last September.
But, despite this downward trend in prime asking rents in recent months, the post-recession prime market remains comparatively strong – prices have risen by 9.3% since January 2008, when the downturn began.
These figures paint a very different picture than the overall UK property market, in which it is usually cheaper to own that rent. The average rent for all property is £868 whereas, on average, a mortgage is £105 a month cheaper and in London £463 a month less expensive.
Nigel Lewis, property analyst at PrimeLocation.com says: “It’s clear that across the UK the more expensive a home is, the better value you get by renting rather than owning it despite the low cost of borrowing at the moment.
“London is still comfortably the most expensive market for prime renters as demand for property in the Capital continues to grow. The Prime rental market is very healthy, so for those who are looking to rent a property at the higher end of the market, now is an excellent time to be shopping around.”