The ongoing effects of the pandemic on house prices and renting

Financial wellness Buying a Property
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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?

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Aren’t we just experiencing a brief lag before rental prices are put up in line?

I can wonder what proportion of residential property being rented out is mortgaged vs fully owned?

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Possibly, but while house prices have increased, mortgage rates have not (yet) so those who already bought to rent will still have the lower mortgages of the past so feel less pressure to increase rents to pay them off.