For the first time in six years, it is now cheaper to rent than to buy a property in nearly all UK locations. In early 2020 it would have been cheaper to get a mortgage than to rent throughout the whole of the UK. This is despite the cost of renting a home rising by over 7% in the period May 2020 to May 2021. In March 2020, someone with a 10% deposit would have been better off by £102 per month if they bought rather than rented. However, it was found that last month the average private-sector tenant was spending £71 a month less in rent. Currently, the biggest saving can be seen in the Greater London area, being £251 cheaper to rent than buying.
Aneisha Beveridge, Hamptons' head of research said "A year ago, lenders were either increasing their rates or withdrawing higher loan-to-value mortgages altogether…For first-time buyers in particular this pushed up the cost of paying a mortgage, if they could get one at all, to well above the cost of renting." Although reducing mortgage rates will be offset by increasing house prices, Ms Beveridge still believes the trend will eventually be reversed during 2022.