First-time buyer monthly mortgage now 15% cheaper than renting

• The sharp increase in rental prices over the past few years has made buying a home, on average, 15% cheaper than renting, reversing a recent trend. Currently, the average rent across England and Wales is £1,250 per month, while the average mortgage repayment stands at £1,066.

• This calculation assumes first-time buyers with a 20% deposit, purchasing a typical first-time buyer property priced at £240,000, with a 25-year mortgage term and a current 5-year fixed rate of 4.4%.

• This shift is further supported by falling mortgage rates. The monthly mortgage payment for the average first-time buyer home peaked in mid-2023 but has since decreased by 10%.

• While this trend offers welcome relief for first-time buyers, challenges related to affordability persist. One of the biggest obstacles remains saving for a deposit— a 20% deposit on an average-priced first-time buyer home amounts to £48,000. Source: Dataloft by PriceHubble, Land Registry. March 2025