Buying cheaper than renting in most UK postcodes

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March 12, 2025
2 min read

Buying cheaper than renting in most UK postcodes

Buying a property, according to Zoopla, is cheaper than renting in all but one region in the UK. That depends however on being able to put down a deposit. Mortgage payments for someone buying their first property is an average £1,038, 20% less than the average rental bill of £1,248 per month across the UK.

The analysis however assumes that an average 20% deposit is paid, equivalent to around £50,740 for a typical first-time buyer property that costs £253,700. For London, the analysis assumes a deposit of 30%.

118 postal areas were analysed by Zoopla.

Mortgages in Glasgow are 30% lower than rental. Newcastle, Liverpool, and Cardiff are all around the same as well. For Harrogate however, 10% of postal areas had mortgage payments costing more than rents, with buyers paying around 15% more. This is followed by Watford at 7%.

But renters still face affordability challenges. An average 20% deposit for a typical first home in the North East is £27,700 while in London it’s £83,400. Many first-time buyers rely on familial support for help with deposits.

“Our renting versus buying analysis is welcome news for would-be first-time buyers looking to buy their first home, having faced steep increases in rents over the last three years,” Richard Donnell, executive director at Zoopla said. “There remain challenges facing first-time buyers, especially those on average incomes or with small deposits. Mortgage regulations introduced in 2015 to stop a housing market boom and bust have created a higher hurdle to home ownership for those on middle incomes, who can afford to make rental payments but are unable to prove they can afford higher mortgage ‘stress’ rates should borrowing costs increase in the future. The more first-time buyers priced out of home ownership, the greater the pressure on the private rental market and rental levels.

“Proposals to review regulations around mortgages are welcome. We do not want to return to the loose lending that preceded the global financial crisis. A modest loosening in lending rules with mortgage stress testing rates closer to 6-7 per cent would help more middle to higher income renters access home ownership and ease some of the pressure in the rental market without causing a boom in house prices.”

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