Why Renting in 2025 Could Be Costing You More Than Buying a Home
With UK rent prices rising faster than mortgage repayments, it may be cheaper to buy than rent in 2025.
Find out how Prospect Tree Mortgages can help you make the switch.
For many people across the UK, renting has long been seen as the more accessible option when compared to buying a home. But recent figures from the Office for National Statistics (ONS) suggest that this assumption may no longer hold true. In fact, renters could be paying more each month than homeowners — and missing out on long-term financial benefits as a result.
At Prospect Tree Mortgages, we believe now is the right time for prospective buyers to review their options. Rising rental prices, improving mortgage rates, and greater lender flexibility mean there is growing opportunity for more people to take that all-important first step onto the property ladder.
UK Rent Prices Continue to Climb
According to the latest data from the ONS https://www.ons.gov.uk/ , average UK private rental prices rose by 7.4% in the 12 months to April 2025, reaching an average of £1,335 per month. This rise is significant, and while the growth rate has slowed slightly from the 7.7% recorded the previous month, rental costs remain on an upward trajectory.
The figures vary across the UK. In England, the average monthly rent now stands at £1,390, while in Wales, tenants have seen the steepest increase at 8.7% year-on-year, with average rents now at £795. Scotland reported a 5.1% increase, and Northern Ireland saw a 7.8% rise in the 12 months to February 2025.
Within England, regional differences are clear. The North East recorded the fastest annual rental inflation at 9.4%, while Yorkshire and The Humber experienced the slowest rise at 4.0%.
House Prices Also Rising – But Mortgage Costs Remain Competitive
Alongside rent increases, UK house prices have also grown, although at a slightly more moderate pace. The average UK house price rose by 6.4% in the 12 months to March 2025, reaching £271,000.
In England, house prices rose by 6.7% to an average of £296,000, while Wales saw an increase of 3.6%, and Scotland reported a 4.6% rise.
While these numbers show steady growth, mortgage costs are not climbing as quickly. With more lenders reintroducing sub-4% interest rates and offering flexible lending solutions, monthly mortgage repayments are becoming increasingly manageable.
According to ONS estimates, the average monthly mortgage payment is now around £1,328 — lower than the average rent figure of £1,335. For many renters, this difference could represent a real opportunity to reduce monthly outgoings and begin building equity in a home of their own.
Why More People Are Turning to Mortgages
The gap between rent and mortgage payments is narrowing, and in many cases, tipping in favour of homeownership. What’s more, the mortgage market is evolving to support a wider range of applicants.
Lenders are now offering:
- Higher loan-to-income ratios, helping people borrow what they need
- Products tailored for self-employed individuals, freelancers, and those with more complex income sources
At Prospect Tree Mortgages, we help our clients navigate these options and make informed decisions about their next steps. Whether you are unsure of your borrowing potential, concerned about your credit history, or simply unsure how to begin, we are here to help.
Get the Right Advice Before You Renew Another Rental Contract
If you’re currently renting and have considered buying in the past, now is the time to explore your options. With rents continuing to rise and competitive mortgage rates returning to the market, delaying your decision could mean spending more than you need to on housing each month.
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, 28.05.2025.
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.
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.