A report from Hamptons reveals that 56% of first-time buyers in the UK are now paying more in monthly mortgage payments than they previously did in rent, marking the highest rate in a decade. On average, these buyers are spending £39 more each month. Rising mortgage rates, particularly since the onset of the Iran war, have contributed to this shift, with average rates for fixed mortgages surpassing 6% for the first time in three years.
Additionally, rental prices are also increasing, with newly agreed rents in Great Britain rising by 2.7% annually as of September. The average rent now stands at £1,433 per month, up from £1,396 a year prior. Experts suggest that if rental growth continues, existing tenants may soon feel the impact as well, widening the gap between new and existing rental prices.