Buying is cheaper than renting (for first-time buyers)

A recent study has suggested that, on average, buying a home can be cheaper than renting across every region of the UK.

For first-time buyers, the headline comparison is between typical monthly rent payments and typical monthly mortgage repayments. The study (commissioned by Santander Mortgages, as reported in the original article) reported that the average monthly rent in the UK is £995, while average monthly mortgage repayments for first-time buyers are £805. On that basis, homeowners can typically be around £190 per month (£2,300 per year) better off than tenants.

Regional differences matter

While the overall message is that buying may cost less month to month, the study also highlights that the picture varies by location.

• South West: average monthly rents exceed mortgage payments by more than £192, suggesting potentially larger monthly savings for first-time buyers who move from renting into ownership.
• London: rental prices are reported as 56% higher than the UK average, with first-time buyers potentially £179 per month better off.
• East of England: the gap narrows, with typical first-time buyer mortgage payments exceeding average rents by only around £2.

These regional outcomes reinforce a key point for first-time buyers: the “rent vs buy” comparison is often highly sensitive to local rental levels and local purchase costs.

Why the monthly comparison can shift over time

The study’s findings focus on monthly affordability, but homeownership can affect your finances in other ways:

• Your payment can build equity: mortgage repayments generally contribute to ownership over time, rather than paying for the right to live in a property.
• Rent can rise: renters may face increases at renewal, whereas mortgage payments are typically structured around the mortgage agreement (though interest rates can change depending on the deal).
• You may still have upfront and ongoing costs: buying usually involves costs beyond the mortgage payment, such as deposit requirements, legal fees, and other expenses associated with purchasing and maintaining a home.

Deposit barriers—and why support may be relevant

The original article notes that many people assume buying requires a large deposit. It also references the continued popularity of government-backed schemes such as Help to Buy.

Note: availability and eligibility for government schemes can change over time, so it’s important to check the latest position before planning your purchase.

The takeaway for first-time buyers

This research doesn’t mean every individual will find buying cheaper in every circumstance, but it does provide a useful snapshot: in the study’s comparison, typical mortgage repayments for first-time buyers were lower than typical rents across the UK.

For anyone considering their first move, the most practical way to interpret this kind of finding is to compare costs that match your situation—especially the local rent you’re paying now, the type of property you’re aiming for, and the mortgage structure you would likely use.