But those in the trade around Norwich are split on whether the issue applies to the Fine City.
The report, by Zoopla, says the recent rise in mortgage rates means it’s now cheaper to rent a home rather than buy one for the first time since 2010.
READ MORE: See inside the Georgian terrace house on sale in King Street
The property website said the average UK rent is £1,163 per month, while average mortgage repayments are £1,285 for first-time buyers on a 15pc deposit.
One city estate agent says the report is not a fair comparison when compared with Norwich’s landscape.
Steve Pymm, director of Pymm & Co estate agents in Ber Street, said: “Rent in the city has gone up drastically.
“It’s about 10pc in the last eight weeks.
“On the other hand, we’ve seen house prices dropping since the budget in October – again by roughly 10pc.
“Also, the average first-time buyer usually scrapes around a 10pc deposit, so the report using 15pc as a benchmark isn’t realistic for Norwich and its surrounding areas.”
Zoopla reported London and the South East are the worst affected locations for higher mortgage costs versus rent.
Wil Barber, director of William’s Way Estate Agents in Fakenham Road, said: “I think it’s true with what I’m seeing lately.
“First-time buyers are hit harder than most because they don’t come with a track record of owning a home.
“It creates more risk for lenders which is why rates are higher.
READ MORE: Norwich City stars swapping footy boots for a four-iron at event
“For the first time in a long time it’s quite even, solidifying the fact it’s really hard out there.
“There’s only about £100 difference between renting and buying costs right now.
“However I’d say it’s still worth getting on the property ladder if people can – it’s painful now but it’ll bounce back at some point.”
Read the full article here
