First-time buyers pay more on mortgage than on rent

By the Editorial Team · Monday, October 19, 2026

Most first-time homebuyers in September paid an average of £39 more per month on mortgages than their previous rent, reversing the trend of lower housing costs seen in past years. This shift is largely due to rising mortgage rates, which have increased borrowing expenses and now make homeownership more costly than renting for a growing number of new buyers.

Most first-time homebuyers now face higher monthly mortgage payments than their previous rent, according to recent data from the estate agency Hamptons. The research indicates that individuals purchasing their first property in September paid, on average, £39 more each month on mortgage repayments than they had on rent.

New owners moving from rented accommodation in September typically paid around £1,266 per month on their mortgage, compared to £1,227 previously spent on rent. This marks a significant change from historical trends, as renters transitioning to homeownership generally experienced a reduction in monthly housing costs. A decade ago, mortgage payments for first-time buyers were approximately 13 percent lower than their rental expenses.

Aneisha Beveridge, head of research at Hamptons, attributed the shift largely to rising mortgage rates following the escalation of the conflict involving Iran on February 28. Beveridge explained that the prior environment of low interest rates made homeownership financially advantageous for tenants, offering an immediate decrease in monthly housing costs along with the security of fixed payments. The recent increase in rates, however, has reversed this dynamic.

Hamptons found that 56 percent of renters who purchased homes in September accepted higher monthly repayments than their previous rent, a notable rise from 28 percent five years ago when mortgage rates were comparatively low. The average two-year fixed mortgage rate has climbed to 5.55 percent from 4.25 percent before the conflict began in February.

Analysts at the property search platform Rightmove estimate that the increase in mortgage rates has added approximately £250 per month to a typical mortgage payment. This development poses new challenges for first-time buyers navigating a housing market where borrowing costs have risen sharply in recent months.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.