Buying vs renting: as mortgage rates drop, which is cheaper?

In the UK, buying a home has traditionally been the preferred option over renting. But is that still true?

Model house on calculator buying vs renting
(Image credit: Model house on a calculator © Getty Images)

Falling mortgage rates have made buying a property cheaper than renting for most people, but much depends on how much you earn and where you want to live.

Average mortgage pricing had shot up last year as the Bank of England hiked rates to tackle soaring inflation, making it a more tricky decision when it came to buying a property as in come cases, renting looked cheaper than paying average rates of 5% or more.

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Swipe to scroll horizontally
RegionAverage monthly mortgage Average monthly rent
North East£827£801
Yokrshire & Humber£954£809
North West£1,030£907
East Midlands£1,081£936
West Midlands£1,118£1,056
East of England£1,546£1,353
Wales£953£864
South West£1,298£1,437
South East£1,705£1,551
Greater London£2,241£2,253
Northern Ireland£779£692
Scotland£953£988
UK£1,231£1,258
Swipe to scroll horizontally
RegionAverage annual payMedian monthly rentPercentage of gross income spent on rent
UK£34,963£1,25042.9%
England £35,10£1,30044.4%
North East£31,200£75028.8%
North West£33,036£95034.5%
Yorkshire£31,920£85032%
West Midlands£33,003 £95034.5%
East Midlands£31,634£89534%
East of England£34,833 £1,25043.1%
London£44,370£2,119 57.3%
South East £36,560 £1,35044,3%
South West £33,450£1,15041.3%
Wales£32,371£90033.4%
Scotland£35,518£95032.1%
Northern Ireland £32,879£85031%
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Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.