Is it better to rent or buy?
A recent survey by Yahoo asked their audience if they thought it was better to rent or buy, following the recent cut to the interest rate.
The Bank of England (BoE) lowered the rate recently to 4% from 4.25%, marking its fifth cut in a year, as the UK grapples with persistent inflation and a cooling jobs market.
Although previous data from Rightmove showed a rise in average rent for some properties, research released by Estate agent Hamptons on Monday showed a fall in the average private rent on newly let homes.
The picture remains mixed, however and many tenants across the UK have seen their rent rise by as much as 3.4%.
For prospective buyers, the BoE’s decision was positive news as lower interest rates have a knock-on effect on lenders’ borrowing rates, leading to cheaper mortgage deals.
Many homebuyers will be considering the lower property purchase costs and deciding whether now is the right time to switch from renting to buying.
Yahoo’s survey revealed a sizeable majority (83%) believed that it was indeed better to buy a property, while only 11% thought renting was the best option and 6% were undecided.
Across the West Midlands, the average house price in May 2025 was £244,000, which was more than a year earlier (£236,000).
Across the UK, a home sold for an average of £269,000 in May 2025, which was up from the May 2024 average of £259,000.
In the year to May 2025, the average price for semi-detached properties in Birmingham rose by 6.0%, while the average price for detached properties increased by 3.9%.
Change in house price by type of property in Birmingham
For each property type, average prices as of May 2025 in Birmingham were:
- Detached properties: £438,000
- Semi-detached properties: £272,000
- Terraced properties: £219,000
- Flats and maisonettes: £153,000
Average private rents rose in Birmingham
The average monthly private rent in Birmingham was £1,059 in June 2025. This was an increase from £992 in June 2024, a 6.7% rise.
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