Renting is now cheaper than buying as ownership costs rise

The recent rise in mortgage rates means that, for many households, renting is now cheaper than buying for the first time after June 2025.

According to data from Rightmove, the average advertised rent in Great Britain is £1,547 per month, while the estimated average monthly mortgage payment is £1,670.

Mortgage estimates are based on an average asking price of £373,971 and a two-year fixed rate of 5.35%, assuming a 20% deposit and a 30-year term. Monthly costs may vary depending on the deposit size, loan tenure and level of borrowing.

Regional differences remain significant. In Scotland and the North East – where property prices are lower – mortgage payments are still lower than rental costs. By contrast, the biggest differences appear in London and the South East, where buying is significantly more expensive than renting.

Mortgage rates have increased from an average of 4.24% in February to 5.35% in April. As a result, renting is now cheaper than buying in more than two-thirds of local authority areas, more than double the proportion recorded earlier in the year.

Colleen Babcock of Rightmove commented: “Mortgage payments have increased quite rapidly in a very short period of time for new buyers. It will be interesting to see whether more buyers will turn to renting temporarily while rates remain high, especially as monthly costs may be higher than average rents and the timing of rate cuts is still unclear.”

regional view

local scene

Areas with the largest gap between rent and mortgage payments

Areas where it is still cheaper to buy than rent