Owning a Home Still Cheaper Than Renting Across Much of the UK
Recent analysis by Zoopla shows that buying a home is still financially more favorable than renting across many parts of the UK. First-time buyers are currently spending around £1,038 a month on mortgage payments—about 20% less than the average rent, which now stands at £1,248. This is based on a 20% deposit, typically £50,740 for a property priced at £253,700. In higher-cost regions like London, buyers generally need to put down more—closer to 30%.
Regions Where Buying Brings the Biggest Savings
The North East leads with the largest difference, where mortgage payments come in 24% lower than renting. Buyers in cities like Glasgow (46% cheaper), Newcastle (34%), and Cardiff (31%) also enjoy significant savings. However, this pattern doesn’t apply everywhere. In the East of England, buying actually costs 9% more than renting. In fact, 10% of UK postcodes show higher costs for buyers, with Harrogate topping the list where buying is 15% pricier.
Deposits and Lending Rules Still Hold Buyers Back
Even though monthly costs favor buying, affordability hurdles persist. Raising a deposit remains a major challenge. Buyers need between £27,700 (North East) and £83,400 (London), and nearly two-thirds of first-time buyers depend on family support to afford these upfront costs.
Since 2015, stricter lending rules have added further complications. Mortgage providers now test whether buyers can afford payments if rates rise—using a stress rate of around 8%. In some places, this means buyers are assessed on higher payments than current rents, even when buying is technically cheaper.
Richard Donnell, Executive Director at Zoopla, commented:
“Our analysis is encouraging for aspiring homeowners who’ve seen rents climb sharply over recent years. Barriers remain, particularly for those on modest incomes or with limited savings… The more people locked out of ownership, the more pressure builds on the rental market and prices.”
He added that reducing the affordability stress test to 6–7% could ease access to mortgages without inflating house prices:
“We’re not calling for a return to reckless lending,” he said, “but sensible adjustments could help more renters become owners.”
Looking to Buy Your First Home?
If you’re considering stepping onto the property ladder and want guidance through the process, get in touch—we’re here to help make your homeownership journey a reality.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage.
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