Is Buying a Home Now Cheaper Than Renting? Zoopla’s Latest Analysis Says Yes
For those looking to step onto the property ladder, new analysis from Zoopla has revealed that first-time buyer mortgage payments are now 20% lower than average rents across Great Britain. According to the data, the typical first-time buyer pays £1,038 per month for their mortgage, compared to the average rent of £1,248 per month (Zoopla, 2024).
The Cost of Buying vs. Renting Across the UK
The analysis assumes first-time buyers put down a 20% deposit, which averages £50,740 for a property priced at £253,700. However, in London, where affordability is a greater challenge, first-time buyer deposits tend to be higher at 30% to improve access to homeownership.
Across most of the UK, buying is cheaper than renting, with the East of England being the only exception. In this region, buying is 9% more expensive than renting. The closest comparisons are found in the South East and East Midlands, where the difference between mortgage repayments and rents is minimal. In contrast, the North East sees the largest advantage, with mortgage repayments 24% lower than rental costs.
Regional Variations: Where is Buying the Cheapest?
Zoopla’s analysis of 118 postal areas across Great Britain highlights significant regional differences in the cost of buying versus renting. Some of the biggest savings for homeowners are found in:
Glasgow – Buying is 46% cheaper than renting
Edinburgh – Buying is 32% cheaper than renting
Newcastle – Buying is 34% cheaper than renting
Liverpool – Buying is 31% cheaper than renting
Cardiff – Buying is 31% cheaper than renting
However, in 10% of postal areas, renting is still the cheaper option. The most notable areas where buying is more expensive include:
Harrogate – Buying costs 15% more than renting
Watford – Buying costs 7% more than renting
Affordability Challenges Still Remain
While the data suggests that monthly mortgage payments are generally lower than rent, affordability remains a significant hurdle for first-time buyers. The biggest challenge is raising a deposit, which varies significantly by region:
North East – Average first-time buyer deposit: £27,700
London – Average first-time buyer deposit: £83,400
Many first-time buyers rely on family assistance, with 63% receiving financial help from relatives (Zoopla, 2024).
Mortgage Regulations and the Future of Homeownership
Richard Donnell, Executive Director at Zoopla, acknowledges that while lower mortgage payments are good news for buyers, regulatory constraints continue to limit access to homeownership. He states:
“Our renting versus buying analysis is welcome news for would-be first-time buyers who have faced steep rent increases over the last three years. However, mortgage regulations introduced in 2015 to prevent a housing market boom and bust have created a higher hurdle for those on middle incomes. Many can afford rental payments but struggle to pass mortgage ‘stress’ tests. A modest loosening of mortgage rules—without returning to pre-financial crisis lending practices—could help more renters transition into homeownership and ease pressure on the rental market.”
What Does This Mean for First-Time Buyers?
With rental prices continuing to rise, prospective homeowners should explore their options carefully. If you’re considering buying your first home, speaking to a mortgage advisor can help you navigate the deposit challenge and find a deal that works for you.
At Prospect Tree Mortgages, we specialise in helping first-time buyers secure the right mortgage for their needs. Get in touch today to explore your options and take your first step towards homeownership!
Your home may be repossessed if you do not keep up repayments on your mortgage. the information contained within was correct at the time of publication but is subject to change, 10.03.2025.
Source: Zoopla, 2024 – Analysis of renting vs. buying across Great Britain.
What’s Next?
If you’re thinking about moving home, remortgaging, or buying your first property, now is a great time to review your mortgage options. At Prospect Tree Mortgages, we’re here to help you understand your choices and find the best mortgage for your situation.
Get in touch with our expert advisors today to discuss how this base rate cut could benefit you. We aim to ensure you make the most of the opportunities available.
Call us at 0800 8620 840 or visit our website at www.ptmortgagesltd.co.uk to learn more.
Your home may be repossessed if you do not keep up repayments on your mortgage. the information contained within was correct at the time of publication but is subject to change, 20.02.2025.
If you’d like to learn more about mortgage products and how we can help you, please don’t hesitate to get in touch with our team. We’re here to help you navigate the ever-evolving world of mortgages and guide you toward a brighter, greener home.