It is cheaper to rent than buy a prime property in the UK, according to PrimeLocation.com’s new Prime Rental Index.

The average cost of renting a prime property in the UK is £1,238, £369 a month less than the typical mortgage for the average prime property.

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.

Following two years of steady growth for the UK prime rental market, asking prices have now fallen to a 10-month low, and are £40 a month lower than last September.

However prime asking rents have still risen by 9.3% since January 2008.

For the overall UK property market, 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, said: “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.”