Hamptons research finds that 56% of first-time buyers moving out of rented homes took on higher monthly mortgage payments in September, highlighting how rising borrowing costs have changed the financial case for buying.
For many people renting in UK, buying a home has traditionally offered the prospect of lower monthly housing costs alongside the longer-term benefits of ownership. But new research from property agency Hamptons suggests that immediate saving is becoming less common.
In September, 56% of first-time buyers who moved from renting into home ownership took on a mortgage payment that was higher than the rent they had previously paid. Hamptons said this was the largest share recorded in at least a decade.
The result represents a notable change from July, when 47% of first-time buyers paid more each month after purchasing. In other words, the balance has shifted: more than half of the buyers covered by the latest research faced a higher monthly housing bill after leaving the rental market.
The figures underline the pressure that mortgage costs are placing on prospective buyers. A purchase may still offer security and the opportunity to build equity, but it does not necessarily mean an immediate reduction in household outgoings.
Mortgage payments have moved above previous rents
Hamptons found that the average monthly mortgage payment among buyers leaving the rental market reached £1,227 in September.
Across this group, first-time buyers were paying an average of £39 more each month than they had paid in rent—equivalent to an increase of 8.6%.
That difference may appear modest when considered as a single monthly amount. Over a year, however, an additional £39 a month comes to £468, before taking account of other costs associated with owning a home.
The comparison is between the mortgage payment taken on by a buyer and the rent they paid before purchasing. It does not mean that every first-time buyer is paying more than every renter, nor does it show the full cost of owning a property. Buyers may also face expenses such as repairs, insurance and other homeownership costs.
Even so, the figures capture a significant change in the monthly calculation confronting people trying to move from renting to buying.
A reversal of the pattern seen in 2022
The latest findings contrast with the experience of many first-time buyers towards the end of the low-interest-rate period in 2022.
Hamptons said that during that period, most first-time buyers could reduce their monthly housing costs by purchasing a home. The principal difficulty was often accumulating a deposit, particularly in a market where house prices were rising relatively quickly.
The balance has since changed. Higher mortgage rates have increased the cost of borrowing, making the monthly repayment a more substantial part of the decision to buy.
For renters considering a purchase, the question is therefore no longer simply whether they can save enough for a deposit or qualify for a mortgage. They also need to assess whether the repayments will fit their budget—and whether they can manage them alongside the other costs of owning a home.
The research does not establish that higher mortgage rates alone explain every difference between rent and mortgage payments. The size and type of property purchased, the mortgage term and the buyer’s previous rent can all affect the comparison.
Older first-time buyers are more likely to face an increase
The pressure is especially pronounced among buyers in their 40s.
Hamptons found that 67% of first-time buyers in this age group took on a mortgage payment above their previous rent in September. That is substantially higher than the 56% share across first-time buyers overall.
The agency said the pattern may partly reflect the choices older buyers make when they enter the market. Some may be looking for a larger property that can meet their needs for a longer period, rather than buying a smaller home and moving again later.
Older buyers also tend to take out mortgages over shorter terms on average. A shorter repayment period can mean larger monthly payments, even where the amount borrowed is not higher.
These factors help explain why the transition from renting to owning can have different financial consequences for buyers at different stages of life. The figures do not, however, show that every older first-time buyer chooses a larger home or has a shorter mortgage.
Homeownership still offers benefits beyond the monthly payment
Hamptons’ head of research, Aneisha Beveridge, said the long-term advantages of owning a home remain. These include building equity, having greater security and eventually owning the property outright once the mortgage has been repaid.
But Beveridge said the immediate monthly saving that had previously helped motivate renters to buy has largely disappeared.
That distinction matters because the financial benefits of ownership may take time to emerge. A mortgage payment can be higher than rent in the short term while still helping a buyer build a stake in a property. The value of that longer-term benefit will depend on the purchase price, mortgage terms, housing market conditions and the costs of maintaining the home.
For people weighing up a purchase, the decision may increasingly involve balancing the higher monthly commitment against the prospect of greater stability and ownership over time.
Rents are rising too, particularly for people moving home
The research also points to continuing pressure in the rental market.
Newly agreed rents across Great Britain rose by 2.7% over the 12 months to September, bringing the average monthly rent to £1,433. Hamptons said this was the fastest annual increase since November 2024.
Beveridge said rental growth on newly let properties was gathering pace, with the acceleration spread fairly evenly across markets outside London.
She said the increases had so far been felt mainly by tenants moving to a new home. But if growth continues, it could begin to affect more existing renters in the coming months as the gap between rents on new tenancies and those already in place widens.
This creates a difficult affordability picture for households on either side of the renting-and-buying divide. Renters moving home may face a higher asking rent, while those seeking to buy may find that the mortgage on a suitable property exceeds what they previously paid to their landlord.
The comparison does not tell the whole story
The Hamptons figures provide a snapshot of monthly payments for first-time buyers who moved from renting into ownership. They should not be read as a complete measure of whether buying is more or less affordable than renting.
Rent and mortgage payments cover different things. Rent pays for the right to occupy a home, while mortgage repayments generally include interest and repayment of borrowed capital. A buyer may build equity through the repayment element, but also takes responsibility for property-related costs and risks that a tenant may not face in the same way.
The research also relates to Great Britain. It does not establish whether first-time buyers in Ireland are experiencing the same pattern, and the figures should not be applied directly to the Irish housing market.
What it does show is that the monthly cost advantage of buying—once an important incentive for renters—has weakened for a substantial share of first-time buyers in Great Britain. With rents also rising, households face difficult choices about where to live, how much they can afford and whether they are financially ready to make the move into homeownership.
