Is it cheaper to buy than rent in 2026? What the UK numbers actually show

The rent vs buy question, reframed for 2026

For years the maths was simple: renting was expensive, but buying was worse once you added up mortgage rates. That gap has narrowed. Average two-year fixed mortgage rates for first-time buyers now sit broadly in the 4.8%–5.7% range depending on deposit size, down from the peaks of 2023, while UK private rents have kept climbing — up 3.5% annually according to the Office for National Statistics (ONS), with the average UK rent around £1,370–£1,380 a month.

That combination changes the sums for a lot of households. It doesn't make buying accessible for everyone — deposits and affordability checks are still the main barrier — but for those who can get a mortgage, the monthly cost of owning versus renting the same type of home is closer than it's been in years, and in some areas has flipped in favour of buying.

We used REalyse data on average sold prices and average asking rents across UK regions, by property type, to see where this is actually happening.

Where a mortgage now costs less than rent

Using an illustrative first-time buyer scenario — a 90% loan-to-value mortgage at around 5.1% over 30 years — we compared the resulting monthly repayment against REalyse's average asking rent for the same property type and region over the past 12 months.

Some regions stand out:

• North East: average flat sold price of roughly £114,000 implies a monthly mortgage payment (at 90% LTV) of around £560, against an average asking rent of about £940 — buying comes in several hundred pounds a month cheaper.

• North West: a typical terraced house sells for around £176,000. The mortgage works out to roughly £860 a month versus an average rent near £1,090.

• Scotland: flats averaging around £170,000 produce a mortgage of about £830 a month, compared with average asking rents near £1,110.

• Wales: terraced houses averaging around £177,000 come with a mortgage near £860 a month against rents averaging roughly £1,110.

Even in London, where prices are highest, the gap on flats is closer than most people assume. A typical London flat at around £481,000 implies a 90% LTV mortgage of roughly £2,350 a month, against an average asking rent of about £2,610 — buying is nominally cheaper on paper, though the deposit required (upwards of £48,000, before stamp duty and fees) puts it out of reach for most renters saving month to month.

REalyse data also shows gross rental yields — the annual rent as a percentage of property value — running highest in the North East and Scotland (7%+ on flats and terraces) and lowest in London and the South East (under 5%). A higher yield generally signals that rents are large relative to purchase price in that area, which is exactly where the rent-vs-buy monthly comparison tends to favour buying.

Where renting still wins

The picture flips for larger, higher-value homes. Detached houses and family homes in London, the South East and the East of England carry mortgage costs that comfortably exceed the rent on an equivalent property, because prices have risen faster than rents in those markets — pushing gross yields down to around 4.5%–5.5%.

For example, a detached home in the East of England averaging around £566,000 implies a 90% LTV mortgage of roughly £2,770 a month, well above the average asking rent of about £1,990 for the same property type. The same pattern holds for most detached and semi-detached stock in the South East and South West.

The takeaway: the "buying beats renting" story in 2026 is largely a flats-and-terraces story, concentrated in regions with lower average prices relative to rent — not a universal shift across all property types and locations.

The catch: deposits, upfront costs and the rental supply squeeze

Three things are worth keeping in mind before treating monthly cost comparisons as the whole picture:

The deposit is still the real barrier. A 10% deposit on a £250,000 home is £25,000 before stamp duty, legal fees and moving costs. Saving that from a rent-squeezed income remains the hardest part of the equation for most first-time buyers, regardless of how the monthly numbers compare.

Ownership carries extra costs renters don't have. Buildings insurance, maintenance, ground rent or service charges (especially relevant for flats), and any energy efficiency upgrades needed to meet future EPC (Energy Performance Certificate) requirements all sit on top of the mortgage payment. These can add £100–£300 a month depending on the property.

Rental supply is still tight, which is keeping rents elevated. The Renters' Rights Act, which removed Section 21 "no-fault" evictions and tightened tenancy rules from May 2026, has prompted some landlords to sell up rather than continue letting. Rightmove and Zoopla data both point to a longer-term shortage of rental stock — around a third fewer homes to rent than a decade ago — even as short-term demand has eased and rent growth has slowed to its lowest pace since 2022. Less rental supply generally means rents stay firmer for longer, even in a calmer market.

Outlook

The direction of travel favours buyers more than it has in several years: rates have eased from their peak, wage growth has started to outpace rent growth in some areas, and REalyse data shows the gap between mortgage costs and rents narrowing fastest for flats and terraced houses outside London and the South East. If Bank of England rate cuts continue through 2026 as some lenders expect, that gap could narrow further.

But this isn't a blanket "buying is now cheaper" moment — it's a patchwork. Anyone weighing up the decision should compare the actual numbers for their target property type and postcode, not just national averages, and factor in the deposit and ownership costs alongside the headline monthly comparison.

If you're trying to work out what a specific property is really worth before making that decision, REalyse's Pulse Valuations tool can give you a more accurate, property-specific estimate than national averages alone.