Additionally, the findings indicate that first-time buyers in Glasgow could potentially make the biggest monthly savings in cash terms by getting on the ladder, with the average monthly mortgage payment for a first home being £215 per month cheaper than the average rent.
At the other end of the spectrum, first-time buyers in St Albans could potentially end up paying £525 more per month when on the property ladder than they were when they were renting, the research indicated. Across Britain, a typical first-time buyer home has a record price tag of £226,399, Rightmove said.
Tim Bannister, property expert at Rightmove said: “For those who are able to save up the deposit, it’s still cheaper to pay off a mortgage as a first-time buyer in many areas than pay the equivalent in monthly rent, despite prices reaching a new record at a national level and mortgage rates rising. It highlights how frenetic the rental market has been for a long time now, with many areas continuing to see record rents and fierce competition between tenants for the properties available.
“It helps to explain why we’re seeing such determination from first-time buyers to continue to get onto the ladder despite the economic headwinds that they face, and why we’re seeing buyers increasingly return to cities while a bigger proportion of renters are looking to move away.”