Let's Talk Money
According to recent research by Hamptons, monthly mortgage payments and rental costs are now closely aligned. For first-time buyers with a 10% deposit:
- Average mortgage payment: £1,328/month
- Average rent payment: £1,356/month
So cost-wise, there's very little difference at the moment—meaning your decision may come down to lifestyle preferences and long-term goals.
Location Makes a Difference
In London and much of the South, renting often works out cheaper than buying due to higher house prices. But in the North East, including areas around County Durham, buying is often still the more affordable option:
- In our region, buying could save you £100–£150 per month compared to renting, based on average costs.
This makes the North East a great place to get more for your money if you're ready to take the plunge into homeownership.
Things to Consider If You're Thinking of Buying
Before making a decision, here are a few key points to help you feel prepared:
- Deposit: The bigger the deposit, the better the mortgage rate. Some lenders now even offer 100% mortgages for certain renters.
- Budget: It's not just about affording the house price. Make sure you're comfortable with all monthly costs, including mortgage payments, insurance, and upkeep.
- Spending habits: When applying for a mortgage, lenders will review your bank statements from the past 3–6 months. Aim to show good budgeting and financial stability.
- Credit score: A solid credit history can make a big difference. If yours needs work, take steps now to improve it.
- Mortgage broker: Talking to an independent broker can help you navigate your options, especially if you're a first-time buyer. They'll also make sure you're aware of any government support schemes available.
Why You Might Still Choose to Rent
Renting isn't just for those who can't buy—it's a valid lifestyle choice, especially if:
- You're not ready to commit to one location.
- You want flexibility for work or personal reasons.
- You'd rather avoid maintenance and repair responsibilities.
Just be mindful that rents can increase (usually once a year), and you may have less security if your landlord decides to sell the property.
So, Should You Buy or Rent This Year?
Ultimately, the right decision depends on your finances, lifestyle, and future plans. If you're ready to settle down and want to invest in your future, 2025 could be a smart time to buy—especially in our region where affordability remains stronger than in much of the UK.
On the other hand, if flexibility is your priority or you need more time to save for a deposit, renting still has its perks.
We're Here to Help
At JW Wood, we're more than estate agents—we're your local property experts. Whether you're ready to take your first step onto the ladder, looking for your next move, or simply weighing up your options, we're here to offer honest, friendly advice.
Need help finding a mortgage? We can introduce you to independent brokers who'll guide you through your options.
Thinking of renting or buying locally? Pop into one of our branches or browse properties on our website—we're happy to talk through what's best for you.
Let's make this the year you feel at home.
Adapted from buyassociationgroup.com and mortgagerequired.com