Renting a home is now cheaper than buying in Great Britain
Key Points
- It is now on average cheaper to rent a property in Great Britain than to buy a typical home.
- Rising mortgage rates have pushed up average monthly payments, making renting the cheaper option across much of the country.
- In areas where housing is more affordable, such as Scotland and the North East, it remains far cheaper to buy than to rent a home.
The average monthly rent in Great Britain is now lower than a typical new mortgage payment for the first time since June 2025.
This is according to the latest data from online property platform Rightmove, which analysed monthly rents and mortgages to determine whether it was more expensive to rent or buy a property in Great Britain.
The average advertised monthly rent across the country is currently £1,547, while a new mortgage on a typical home will currently cost buyers £1,670 per month.
The mortgage figure was calculated by using the current average asking price of £373,971 together with the average two-year fixed mortgage rate of 5.35% recorded so far in April. The cost assumes a 20% deposit and a 30-year mortgage term.
This comparison shows that now, on average, renters in Great Britain come out £123 better off than buyers.
Renting becoming cheaper than buying does not have much to do with rentals dropping in price, but instead with the increase in mortgage rates.
In February, the average two-year fixed rate was 4.24%, which has since climbed to 5.35%.
However, the gap is more distinct in areas where house prices are higher, and in places where house prices are relatively affordable, it is still cheaper to buy than to rent.
In London and the South East, it is up to £363 per month cheaper to rent than to buy, while in Scotland buyers come out £191 on top of renters.
“Mortgage payments have risen quite sharply in a short space of time for new buyers,” said Rightmove property expert Colleen Babcock.
“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.”
Below are the average regional mortgage and rent payments in Great Britain.
| Region | Average asking price | Average mortgage payment | Average monthly rent | Difference |
|---|---|---|---|---|
| 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 |
