Renting cheaper than a mortgage for first time since June 2025
- The cost of renting a typical home in Great Britain is cheaper than the average monthly mortgage payment for the first time since June 2025 due to higher average mortgage rates
- The average advertised monthly rent across Great Britain is currently £1,547. This compares to an average new monthly mortgage payment of £1,670 – meaning on average renters pay £123 less:
- The average mortgage payment uses the average asking price for a home of £373,971, the average two-year fixed rate of 5.35% in April, and assumes a 20% deposit and mortgage term of 30 years
- Scotland and the North East, where prices are lowest, are the only parts of Great Britain where a typical new mortgage is cheaper than renting
- London and the South East, where prices are highest, have the largest gap between average mortgage and rental payments
- Looking more locally, renting is cheaper than a mortgage in more than two-thirds of local authorities. This has also doubled from a third in February when mortgage rates were lower
New analysis from Rightmove, the UK’s largest property platform, shows that the average advertised rent in Great Britain is now cheaper than a typical new mortgage payment for the first time since June 2025.
The average advertised monthly rent across Great Britain is currently £1,547. This is £123 lower than the average new monthly mortgage payment of £1,670.
To calculate the average mortgage payment, Rightmove has used the current average asking price for a home of £373,971 and the average two-year fixed rate so far in April of 5.35%. The calculations assume a new buyer has a 20% deposit and has chosen to spread the cost of the mortgage over 30 years.
Building a larger deposit, borrowing less, and spreading the mortgage payment over a longer term are all factors which can lower monthly mortgage payments.
Scotland and the North East, where asking prices are lowest, are the only parts of Great Britain where a typical new mortgage is still cheaper than renting despite higher average mortgage rates.
London and the South East, where house prices are highest, have the largest gap between average mortgage and rental payments.
The average two-year fixed mortgage rate has increased from 4.24% in February, before rates started rising, to 5.35% in April.
Looking at the data more locally, renting is cheaper than a mortgage in more than two-thirds of local authorities which has more than doubled in April from February.
Colleen Babcock, Rightmove’s property expert says: “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 |
You May Also Enjoy
Renting cheaper than a mortgage for first time since June 2025
As RRA Changes Loom, Thoughts from the Industry
Three steps landlords should take to pet-proof properties under new laws
Market continues to build momentum
41% of letting agents unaware of rent rule changes
