WE'RE OPEN: 7 DAYS A WEEK, 8am - 11pm
    Get a Valuation
    Register/⌂ Propertyfile
    Logo
    LogoLogo

    Open 7 days a week, 8am - 11pm

    Property Management

    PROPERTY MANAGEMENT / EMERGENCIES
    t: 0208 878 4277

    Barnes

    SALES
    e: sales@jabarnes.co.uk
    t: 020 8876 0100
    Contact Branch
    Properties for sale

    LETTINGS
    e: lettings@jabarnes.co.uk
    t: 020 8878 8688
    Contact Branch
    Properties to rent

    BARNES MARKET DATA

    East Sheen

    SALES
    e: sales@jasheen.co.uk
    t: 020 8876 6611
    Contact Branch
    Properties for sale

    LETTINGS
    e: lettings@jasheen.co.uk
    t: 020 8392 6161
    Contact Branch
    Properties to rent

    EAST SHEEN MARKET DATA

    Putney

    SALES
    e: sales@japutney.co.uk
    t: 020 8788 6611
    Contact Branch
    Properties for sale

    LETTINGS
    e: lettings@japutney.co.uk
    t: 020 8785 4400
    Contact Branch
    Properties to rent

    PUTNEY MARKET DATA

    Sales

    Is it more affordable to buy than rent?

    6 months ago
    Is it more affordable to buy than rent?

    Try as we might to adopt a more European attitude and feel totally comfortable with renting our entire lives, many of us aspire to homeownership. It’s an aim that stems back to the 1980s when the then Prime Minister, Margaret Thatcher, set out to create a ‘property-owning democracy’.

    Without going into politics in finer detail, buying a place to call our own has remained the nirvana but a wide variety of numbers have to stack up for this to be possible. It certainly looks like the sums will work out in favour of many potential purchasers this spring.

    Zoopla confirmed those who buy a property will spend less per month than those who rent. The portal’s maths found the typical first-time buyer mortgage repayment is an average of £1,038 per month. In contrast, the average rent across Great Britain is £1,248 per month – 20% higher than a mortgage payment. 

    The portal does make quite a sweeping claim so it’s good to examine the small print. Zoopla factored in a 30-year mortgage with an interest rate of 4.5%. A shorter term and a higher interest rate would immediately skew the figures.

    The portal also assumed the first-time buyer was able to put down a 20% deposit on a typical first-time buyer priced property bought for £253,700. As such, the average purchaser will need to start with savings equivalent to £50,740. A 20% deposit could, however, be as little as £27,700 in the North East and as much as £83,400 in London.

    Granular detail also revealed there is still one UK region where it is more expensive to buy than rent and that’s in the East of England. Here it is 9% more expensive to purchase a property than rent one. 

    The biggest difference in cost between renting and buying was noted in Wales. First-timer buyers here are saving an average of £193 a month by saying goodbye to tenant status. In Scotland, the monthly saving is £157.

    The good news for prospective first-time buyers should be caveated. While mortgage repayments calculated with a 4.5% interest rate are affordable to many – and indeed are cheaper than monthly rents in many areas – lenders are still looking for purchasers to demonstrate they can afford higher repayments.

    A stress test will test a buyer’s finances to see if they would struggle with mortgage repayments if the applied interest rate increased. At the moment, some lenders are testing affordability if the rate rose to 8%.

    This may change in the immediate future as the FCA - the UK’s financial services regulator – has asked lenders to relax their stress testing. It is thought a test rate of 6-7% would help more first-time buyers access home loans.

    If you are a first-time buyer and would like to see if it’s now cheaper for you to buy a home of your own rather than rent, please get in touch. We can help you work out some initial figures, show you properties that are in your budget and introduce you to a mortgage adviser.

    Share this article

    More Articles

    First-Time Buyers Are Skipping Starter Homes

    First-Time Buyers Are Skipping Starter Homes

    Published 16 days ago

    New analysis has revealed an interesting shift in the purchasing habits of first-time buyers. Instead of buying a traditional starter home – a studio, a one-bedroom flat or a small terraced house – Barclays found a third of first-timer purchases are semi-detached homes.

    Read More
    5 Mistakes to Avoid When Viewing a Property

    5 Mistakes to Avoid When Viewing a Property

    Published 19 days ago

    Viewing a home? Don’t let excitement cloud your judgment. Discover 5 key mistakes buyers make — and how to avoid them.

    Read More
    Help to Buy, Shared Ownership & Other 2025 Schemes

    Help to Buy, Shared Ownership & Other 2025 Schemes

    Published 22 days ago

    Help to Buy, shared ownership, mortgage guarantees and more - what’s really available now?

    Read More

    Sign up for our newsletter

    Subscribe to receive the latest property market information to your inbox, full of market knowledge and tips for your home.

    You may unsubscribe at any time. See our Privacy Policy.

    Back to Home

    GUIDES 

    Selling a property
    Letting a property
    Buying a property
    Renting a property

    LETTINGS BRANCHES 

    Barnes
    East Sheen
    Putney

    SALES BRANCHES 

    Barnes
    East Sheen
    Putney Hill
    Lower Putney

    ARLA
    Guild
    NAEA
    OnTheMarket
    RightMove
    ThePropertyOmbudsman
    © 2025 James Anderson
    Privacy policy|Terms & conditions|Cookie policy|CMP Certificate
    Powered by