Renting has become cheaper than paying a mortgage for the first time since June 2025, research from Rightmove found.
Average advertised monthly rent in Great Britain stood at £1,547, while a new monthly mortgage payment came in at £1,670.
Rightmove based its mortgage figures on the current average asking price of £373,971, a 2-year fixed rate of 5.35% in April, with a 20% deposit and a 30-year term.
The research showed that building a larger deposit, borrowing less or spreading payments over a longer term can make mortgages more affordable.
It revealed that Scotland and the North East were the only regions where a typical new mortgage is still cheaper than renting.
In London and the South East, where house prices are highest, the gap between mortgage and rent is widest.
The average 2-year fixed mortgage rate rose from 4.24% in February to 5.35% in April.
Renting is now cheaper than a mortgage in more than two-thirds of local authorities, up from a third in February.
Colleen Babcock, property expert at Rightmove, said: “Mortgage payments have risen quite sharply in a short space of time for new buyers.
“It will be interesting to see whether more would be buyers turn to renting temporarily while rates remain high, particularly when monthly costs can exceed average rents and the timing of rate cuts is still unclear.”
Nathan Emerson, CEO at Propertymark, said: “Figures showing that mortgage payments are now exceeding rents in many areas will be a concern for homeowners and those aspiring to buy, and they clearly reflect the impact of higher interest rates on household finances.
“For many, the cost of borrowing has risen sharply in a short space of time, making homeownership less affordable and, in some cases, delaying plans to move or step onto the property ladder altogether.
“This shift highlights the wider economic pressures facing consumers, where affordability challenges are being felt across both renting and buying.”
Emerson added: “While renting may appear comparatively cheaper in the short term, it does not necessarily mean it is more affordable overall, particularly as tenants continue to manage the cost of living and limited housing supply.
“It is also important to view this in the context of a private rented sector that has been under sustained pressure.
“Landlords have faced rising mortgage costs, increased taxation and ongoing regulatory changes, and many have worked hard to absorb these increases rather than passing them fully on to tenants.”
He said: “However, with borrowing costs now elevated, it is becoming more difficult for new and existing investors to enter the market or expand portfolios, which in turn restricts supply.
“Supporting pathways into homeownership while ensuring there is sufficient investment in the private rented sector will be key to improving affordability and choice for everyone.”