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Cheaper for Britons to Rent than Buy After Mortgage Rates Rise ‘Sharply’
Rightmove said rising borrowing costs pushed average monthly mortgage payments to £1,670, or £123 more than the typical advertised rent.
- For the first time since June last year, the cost of a typical new mortgage payment has overtaken the average rent across Britain, according to Rightmove analysis.
- Market volatility related to Middle East conflict pushed borrowing costs higher, driving the average two-year fixed mortgage rate to 5.35% in April from 4.24% in February.
- Rightmove data shows the average advertised monthly rent is £1,547, which is £123 less than the average new monthly mortgage payment of £1,670, assuming a 20% deposit and 30-year term.
- Regional disparities persist: the South East sees rents £304 cheaper than mortgages, while the North West remains £7 cheaper to rent, reflecting broader affordability challenges noted by Propertymark CEO Nathan Emerson.
- Rightmove property expert Colleen Babcock suggested prospective buyers may turn to renting temporarily while rates remain high, though renting may not be more affordable overall given limited housing supply.
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Renting now cheaper than a mortgage, says Rightmove
Renting is now cheaper than buying for the first time since June 2025, Rightmove says, reflecting the recent rise in mortgage rates. Rightmove said that the average advertised rent in Great Britain is now £1,547 a month, whereas the typical monthly mortgage payment is £1,670.… The post Renting now cheaper than a mortgage, says Rightmove appeared first on Mortgage Finance Gazette.
Coverage Details
Total News Sources14
Leaning Left4Leaning Right0Center1Last UpdatedBias Distribution80% Left
Bias Distribution
- 80% of the sources lean Left
80% Left
L 80%
C 20%
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