In today's housing market, a third of homes for sale are cheaper to buy than rent, with the average first-time buyer saving £93 a month on mortgage repayments compared to renting.

Key Takeaways:

• 34% of Homes: A third of homes listed for sale on Zoopla can be purchased with mortgage repayments that cost less than the average rent in the same area.
• Monthly Savings: Buying an average home with a 20% deposit on a 30-year mortgage saves £93 per month compared to renting.
• Best Availability: The North East, Scotland, and North West have over 40% of homes with mortgage costs below rental prices.
• Top Area: Oadby and Wigston, near Leicester, has the highest proportion of homes cheaper to buy than rent, with 82% of listings fitting this criterion.

Detailed Insights:

1. Regional Variations:
   • North East, Scotland, and North West: These regions offer the best chances of finding affordable homes, with 48%, 46%, and 44% of listings respectively cheaper to buy than rent. The monthly savings in these areas range between £240 and £425.
   • South and Midlands: The South West and East Midlands have fewer such opportunities, with 27% and 33% of homes respectively having mortgage repayments lower than rent, due to higher home prices and borrowing costs.

2. Urban Advantage:
   • Urban Areas: In cities like Manchester (62%), Newcastle (68%), Southampton (62%), and Sheffield (51%), the majority of homes for sale are cheaper to buy than rent. This is largely due to the prevalence of flats, which are typically more affordable.
   • Flats: Two-thirds of flats on the market are cheaper to buy than rent, making them a particularly attractive option for potential homeowners.

3. London's Unique Market:
   • Proportion of Homes: In London, two in every five homes (40%) for sale have lower mortgage repayments than rent.
   • Rental vs. Price Inflation: Over the past five years, rents in London have increased by 26.6%, while house prices have only risen by 8.9%, making buying more cost-effective.
   • Flat Advantage: Nine out of ten homes in London that are cheaper to buy than rent are flats, which typically come with a lower price tag. The difference between typical first-time buyer monthly mortgage payments and rent is £470 in inner London and £170 in outer London.

Additional Figures:

• 150,000 Homes: There are currently 150,000 homes for sale that have mortgage repayments cheaper than rent, representing 34% of the total listings.
• Savings Trend: The gap between mortgage and rent costs has improved since last summer when mortgage rates were 1% higher, making it cheaper to rent than to buy at that time.

First-time buyers can find significant savings by purchasing a home rather than renting, particularly in the North, Scotland, and urban areas with a high supply of flats. With 34% of homes currently offering lower mortgage repayments than rent, and notable savings in regions like London and the North East, the current market presents a strong case for buying over renting.

Sourced from Zoopla