Rising mortgage rates have pushed average monthly repayments above rents for the first time since June 2025 in a shift that is likely to influence first-time buyer behaviour.

New data from Rightmove shows the average new mortgage payment now stands at £1,670 per month, compared to an average advertised rent of £1,547.

The £123 gap reflects a sharp increase in borrowing costs, with the average two-year fixed rate rising from 4.24% in February to 5.35% in April.

The mortgage calculation is based on an average asking price of £373,971, a 20% deposit and a 30-year term, underlining the affordability pressures facing new entrants to the market.

MIND THE GAP

The shift is most pronounced in higher-value regions, with London and the South East seeing the widest gap between mortgage repayments and rents.

Scotland and the North East remain the only areas where buying is still typically cheaper than renting, due to lower property values.

At a local level, renting is now cheaper than buying in more than two-thirds of local authorities, double the proportion recorded in February when mortgage rates were lower.

The data highlights the sensitivity of buyer affordability to short-term rate movements, particularly for those relying on high loan-to-value borrowing.

For brokers, the figures reinforce the challenge of supporting first-time buyers in a higher rate environment, where monthly affordability rather than overall purchase price is becoming the primary constraint.

TIMING IS CRUCIAL

Colleen Babcock (main picture, inset), 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.”