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Renting Now Cheaper Than Buying Across Britain as Mortgage Costs Spike

Rightmove blames a market rate surge linked to the Middle East conflict.

Overview

  • Rightmove reports the average advertised rent is £1,547, which is £123 below the typical new mortgage payment of £1,670, the first such reversal since June last year.
  • The shift follows a jump in borrowing costs since early March after the Middle East conflict rattled markets and lifted swap rates that lenders use to set fixed‑rate mortgages.
  • Average two‑year fixed rates climbed from 4.24% in February to 5.35% in April as many lenders pulled deals during the turmoil, though some have trimmed rates in recent days.
  • Renting is cheaper on average across Britain, yet buying still wins in Scotland and the North East, with the largest rent‑over‑mortgage gaps in London and the South East.
  • Individual costs vary because Rightmove’s model assumes a £373,971 asking price with a 20% deposit over 30 years, and experts say some buyers may rent for now even though renting is not always cheaper over the long term.