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First time home buyer average monthly costs vs rental payments in the UK 2009-2019

Approximately one in five households in England in 2019 occupied a dwelling that was privately rented. Multiple factors can influence the decision to purchase a home such as affordability of housing and access to mortgages. Another question one could ask is, is it cheaper to rent or to buy?

Buying vs renting costs

This statistic shows the comparison between average monthly cost for buying a home for first-time buyers versus monthly cost of renting residential property in the United Kingdom (UK) from 2009 to 2019. From 2010 to 2019, the average monthly costs of buying a home were lower than renting it. The renting versus buying gap fluctuated during the period and in 2019, it reached its lowest value since 2010 of 19 British pounds.

Barriers to home ownership

Nevertheless, buying a home is not that straightforward. For younger (18-40) potential first-time buyers in the United Kingdom there are a number of barriers that are stopping them from acquiring their very own home. For 30 percent of respondents surveyed, raising a deposit was the main obstacle. Other reasons stopping potential first-time buyers were the fact that they could not get a mortgage on their current income and that their credit ratings were not good enough. Unsurprisingly, the highest share of people who are buying a home with a mortgage was in the age group of 45 to 55-year olds.

Average monthly costs of buying a home* versus renting an apartment in the United Kingdom (UK) from 2009 to 2019

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Sources

Release date

February 2020

Region

United Kingdom

Survey time period

December 2009 to December 2019

Supplementary notes

* Payments refer to the average for buying and renting a three bedroom house over 12 months to December for each year for the first-time buyer.

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Statistics on "First time home buyers in the United Kingdom (UK)"

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