The recent increase in mortgage rates means that, for many households, renting is now cheaper than buying for the first time since June 2025.
According to data from Rightmove, the average advertised rent in Great Britain is £1,547 per month, compared with an estimated average monthly mortgage payment of £1,670.
The mortgage estimate is 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 can vary depending on deposit size, loan term and borrowing level.
Regional differences remain significant. In Scotland and the North East—where property prices are lower—mortgage payments are still typically below rental costs. In contrast, London and the South East show the widest gap, with buying substantially more expensive than renting.
Mortgage rates have risen 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.
Rightmove’s Colleen Babcock commented: “Mortgage payments have risen quite sharply in a short space of time for new buyers. It will be interesting to see whether more would be buyers turn to renting temporarily while rates remain high, particularly when monthly costs can exceed average rents and the timing of rate cuts is still unclear.”
Regional view
Region | Average asking price | Average mortgage payment | Average monthly rent | Difference between rent and mortgage payment |
East Midlands | £291,392 | £1,301 | £1,132 | -£169 |
East of England | £421,237 | £1,881 | £1,577 | -£304 |
London | £680,147 | £3,038 | £2,676 | -£362 |
North East | £198,416 | £886 | £931 | +£45 |
North West | £271,750 | £1,214 | £1,207 | -£7 |
Scotland | £208,122 | £930 | £1,121 | +£191 |
South East | £482,573 | £2,155 | £1,792 | -£363 |
South West | £387,771 | £1,732 | £1,433 | -£299 |
Great Britain | £373,971 | £1,670 | £1,547 | -£123 |
Wales | £274,007 | £1,224 | £1,087 | -£137 |
West Midlands | £299,150 | £1,336 | £1,192 | -£144 |
Yorkshire and The Humber | £258,812 | £1,156 | £1,056 | -£100 |
Local view
Areas with the biggest gap between rents and mortgage payments
Region | Average asking price | Average mortgage payment | Average monthly rent | Difference between rent and mortgage payment |
Westminster | £1,420,160 | £6,343 | £5,053 | -£1,290 |
Kensington and Chelsea | £1,534,365 | £6,853 | £5,604 | -£1,249 |
Elmbridge | £902,978 | £4,033 | £3,064 | -£969 |
St Albans | £730,934 | £3,265 | £2,384 | -£881 |
Richmond upon Thames | £901,490 | £4,026 | £3,173 | -£853 |
Mole Valley | £673,423 | £3,008 | £2,318 | -£690 |
Three Rivers | £685,898 | £3,063 | £2,379 | -£684 |
South Hams | £462,653 | £2,066 | £1,414 | -£652 |
Chichester | £526,433 | £2,351 | £1,733 | -£618 |
Waverley | £659,733 | £2,947 | £2,393 | -£554 |
Areas where buying is still cheaper than renting
Region | Average asking price | Average mortgage payment | Average monthly rent | Difference between rent and mortgage payment |
Midlothian | £246,978 | £1,103 | £1,494 | +£391 |
Sefton | £247,433 | £1,105 | £1,473 | +£368 |
Glasgow City | £174,606 | £780 | £1,105 | +£325 |
Aberdeen City | £153,435 | £685 | £991 | +£306 |
Barking and Dagenham | £365,379 | £1,632 | £1,925 | +£293 |
Newham | £437,442 | £1,954 | £2,222 | +£268 |
South Lanarkshire | £185,922 | £830 | £1,094 | +£264 |
West Dunbartonshire | £142,467 | £636 | £865 | +£229 |
Salford | £245,478 | £1,096 | £1,323 | +£227 |
Renfrewshire | £163,819 | £732 | £954 | +£222 |
Read the orginal article: https://propertyindustryeye.com/renting-now-cheaper-than-buying-as-buying-costs-surge/?utm_source=rss&utm_medium=rss&utm_campaign=renting-now-cheaper-than-buying-as-buying-costs-surge
