The cost of paying a mortgage as a first-time buyer is 20% lower than renting, analysis from Zoopla has revealed.
Monthly payments come to £1,038 per month, compared to the average rent of £1,248 across the UK.
Richard Donnell, executive director at Zoopla, said: “Our renting versus buying analysis is welcome news for would-be first-time buyers looking to buy their first home, having faced steep increases in rents over the last three years.
“There remain challenges facing first-time buyers, especially those on average incomes or with small deposits.
“Mortgage regulations introduced in 2015 to stop a housing market boom and bust have created a higher hurdle to home ownership for those on middle incomes, who can afford to make rental payments but are unable to prove they can afford higher mortgage ‘stress’ rates should borrowing costs increase in the future.”
It is cheaper to buy than rent across all areas of the UK, with the exception of the East of England, where it is 9% more expensive.
The cost of buying versus renting are very close across the South East and the East Midlands regions, with the widest gap in the North East where mortgage repayments are 24% below rents.
Donnell added: “The more first-time buyers priced out of home ownership, the greater the pressure on the private rental market and rental levels.
“Proposals to review regulations around mortgages are welcome. We do not want to return to the loose lending that preceded the global financial crisis.
“A modest loosening in lending rules with mortgage stress testing rates closer to 6-7% would help more middle to higher income renters access home ownership and ease some of the pressure in the rental market without causing a boom in house prices.”
An average 20% deposit on a typical first-time buyer home ranges from £27,700 in the North East, to £83,400 in London.
Many first-time buyers rely on family support for help with deposits, with 63% admitting that they received help from family members when buying their first home.
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