LONDON: UK rental costs are the highest in Europe but homeowners are benefiting from cheap mortgages, data suggests.
Tenants typically spend 39.1% of their income on rent compared with a European average of 28%, figures from the National Housing Federation suggest.
The federation, which represents housing associations, also said that renters were less secure in their homes, owing to short tenancies.
However, homeowners are benefitting from competition between lenders.
The British Bankers’ Association (BBA) said that there was “fierce competition” among lenders which meant that “great mortgage deals” were available.
Low interest rates, a trend of owners sticking with long-term tracker deals, and a lack of properties on the market are all contributing to lenders lowering the cost of home loans to try to tempt owners to their mortgage products.
