Zoopla’s analysis reveals that buying a home is cheaper than renting across all UK regions except the East of England—provided buyers can secure a mortgage deposit. On average, first-time buyer mortgage payments (£1,038 per month) are 20% lower than rent (£1,248 per month). However, affordability challenges remain due to high deposit requirements.

The study assumes a 20% deposit (£50,740) on a typical first-time buyer property (£253,700). Deposit requirements vary significantly, from £27,700 in the North East to £83,400 in London, where deposits tend to be larger (30%) due to affordability constraints.

The gap between buying and renting is largest in the North East, where mortgage repayments are 24% lower than rent. Conversely, in the East of England, buying costs 6% more than renting. In some areas, such as Glasgow, Newcastle, Liverpool, and Cardiff, buying is over 30% cheaper than renting.

However, buying is more expensive than renting in 10% of UK postal areas, with Harrogate (15% higher) and Watford (7% higher) leading the list.

Richard Donnell, Zoopla’s executive director, highlights that while the findings are positive for first-time buyers, many still struggle due to strict mortgage regulations. Despite being able to afford rent, some buyers fail affordability tests required for mortgages. He suggests that reviewing lending regulations, including lowering stress testing rates to 6-7%, could help more renters transition into home ownership without triggering a housing boom.