Renting is now cheaper than buying across much of the UK

• For the first time since June 2025, the average monthly rent in Great Britain is lower than a typical new mortgage payment
• Renters are paying £123 less per month on average, as mortgage rates have climbed to 5.35% on a two-year fixed deal*
• Renting is cheaper than buying in more than two thirds of local authority areas, more than double the proportion seen in February

Renting a typical home in Great Britain is now less expensive than taking out a new mortgage to buy one.

The average advertised monthly rent across the country is now £1,547. A new mortgage on a typical home currently costs around £1,670 a month, so renters are coming out £123 better off.

To arrive at that mortgage figure, we used the current average asking price of £373,971, paired with the average two-year fixed rate of 5.35% recorded so far in April. The calculations assume a 20% deposit and a 30-year term.

So, what has changed? The simple answer is that mortgage rates have gone up. The average two-year fixed rate sat at 4.24% in February. By April it had climbed to 5.35%. That increase is enough to push a new buyer’s monthly payment above what many people are currently paying in rent.

Colleen Babcock, our 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.”

How does it vary across Great Britain?

The national picture does not tell the whole story. There are real differences from one part of the country to another, largely driven by local property prices.

Scotland and the North East are the only two regions where a new mortgage still works out cheaper than renting, thanks to lower average asking prices in both areas.

At the other end of the scale, London and the South East have the widest gaps between renting and buying. Here, higher house prices make new mortgage payments significantly more expensive than renting.

Avg. regional mortgage and rent payments*

Where is the gap biggest?

There are no real surprises about the locations that sit at the top of this table.

Westminster and Kensington and Chelsea are among the priciest places to buy in the country, and the gap reflects that. In both areas, monthly mortgage payments run more than £1,200 above average rents.

A cluster of Surrey commuter towns sit just behind them, with Elmbridge, Mole Valley and Waverley all featuring prominently.

Areas with the biggest gap between mortgage payments and rents*

Where can buying still be cheaper than renting?

There are still several places where buying a home works out more affordable month to month than renting one.

Scotland dominates this table, and it is not hard to see why. Lower average asking prices mean monthly mortgage payments stay relatively modest, and in areas like Glasgow City and Aberdeen City they come in well below what tenants are typically paying. Midlothian and South Lanarkshire tell a similar story.

In England, Sefton and Salford both make the list – again these areas are helped by more affordable property prices keeping borrowing costs in check.

Areas where buying is still cheaper than renting*

What does this mean for you?

Of course, the monthly cost comparison only tells you so much. Buying means building equity over time, and the rate picture will not stay the same forever.

Whether you are renting and thinking about making a move, or just trying to get a clearer sense of where you stand, it helps to know what the numbers look like for your situation.

Our mortgage calculator is a good place to start. Plug in a property price and deposit and you can see straight away what your monthly payments might look like.

You can also get a Mortgage in Principle through Rightmove, which gives you a clearer picture of how much you could borrow before you start searching in earnest.

Please note: Your home may be repossessed if you do not keep up repayments on the mortgage. Rightmove is not authorised to give financial advice; the information and opinions provided in these articles are not intended to be financial advice and should not be relied upon when making financial decisions. Please seek advice from a regulated mortgage adviser. 

*All mortgage data provided by specialist mortgage technology provider Podium Solutions. House price data from the Rightmove HPI.