A majority of first-time UK buyers now pay more towards their monthly mortgage bills than they used to pay in rent, the estate agent Hamptons has found.
Last month 56% of first-time buyers said their monthly mortgage bills exceeded their previous rent, the highest proportion in at least a decade. They paid £39 more on average.
The research has found that the annual pace of rental growth continued to accelerate for the tenth straight month in September. Newly agreed rents across Great Britain rose by 2.7% over the last 12 months, the fastest pace since November 2024.
This takes the average rent to £1,433 per month nationally, up from £1,396 in September last year. Unlike the post-Covid pickup in rental growth, which was led by the Midlands and Northern England, today’s acceleration is more evenly spread across the country.
First-time buyers in their 40s faced the biggest jump in their housing costs, with 67% taking on a mortgage that was more expensive than their rent. On average, their monthly mortgage costs were 18% higher than their rent. The South East and South West both recorded annual growth above 4.0% for the first time since September 2024.
In Greater London, the average monthly rent on new lets stood at £2,357, up 1.5% compared with last year. It increased the most in the south of England, where the average rose by 3.7% to £1,419,,
Commenting, Aneisha Beveridge, Head of Research at Hamptons said “Rental growth on newly let homes continues to gather pace, with the acceleration now spread fairly evenly across markets outside the capital. So far this year, higher rents have mainly been felt by tenants moving home.
“But if growth continues to pick up, it is likely to feed through to more existing tenants in the coming months as the gap between new and existing rents widens.”
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