Is Buying a House Still Better Than Renting? New Figures Reveal a Surprising Change

By Chris Bowman, Managing Director, Bowman Estates

For years, one of the biggest arguments for buying your own home has been simple.

Why pay somebody else’s mortgage when you could be paying your own?

It’s something we’ve all heard.

But new research published this week suggests that the financial argument for buying a property is changing.

And the figures might surprise you.

More than half of first-time buyers are now paying more than they did in rent

According to new research from Hamptons, reported on 19 October 2026, 56% of first-time buyers are now paying more on their monthly mortgage than they were previously paying in rent.

That’s the highest proportion in at least a decade.

On average, these buyers are paying £39 more per month.

It might not sound like an enormous amount, but it represents a significant shift in the property market.

For years, getting onto the property ladder often meant replacing an expensive monthly rental payment with a cheaper mortgage.

Now, for many buyers, that immediate saving has disappeared.

So does that mean renting has become the better option?

Not necessarily.

The part people often forget

Imagine two people living in similar properties.

One rents their home for £1,000 per month.

The other owns their property and pays £1,100 per month towards their mortgage.

At first glance, the renter appears to be £100 better off every month.

But there’s an important difference.

The homeowner’s repayment mortgage is gradually reducing the amount they owe on the property.

Part of that monthly payment is effectively building ownership.

The renter, meanwhile, isn’t building equity in the property they’re living in.

Of course, homeowners also have maintenance costs, insurance and other expenses that renters may not face.

And property values can fall as well as rise.

But over a longer period, owning a property can create financial opportunities that renting doesn’t offer.

That’s why I think comparing rent and mortgage payments alone doesn’t tell the full story.

Mortgage rates are changing the equation

One of the biggest reasons behind this shift is the cost of borrowing.

According to Moneyfacts, average five-year fixed mortgage rates were sitting at approximately 5.99% on 19 October.

For somebody purchasing their first property, that’s a significant expense.

Let’s look at an example.

Imagine you’re buying a £250,000 home with a 10% deposit.

You would need a mortgage of £225,000.

Over 30 years, at an illustrative interest rate of 6%, your monthly repayment would be approximately £1,349.

That’s before maintenance, buildings insurance and other ownership costs.

For many households, that’s a serious financial commitment.

And it’s one of the reasons why buyers are having to think more carefully about affordability.

But renting isn’t exactly getting cheaper either

Here’s where the story becomes particularly interesting.

While mortgage costs have increased, rents have continued rising too.

The latest figures show average UK rents increased by 2.7% annually in September, reaching £1,433 per month.

That doesn’t mean every tenant is paying that amount, of course. Rental prices vary enormously depending on location and property type.

But it highlights the difficult position many households find themselves in.

Buying is expensive.

Renting is expensive.

And saving for a deposit while paying rent can be particularly challenging.

For first-time buyers, it can feel like the goalposts keep moving.

What about Ramsbottom, Bury and Bolton?

Our local property market offers a wide range of opportunities.

From traditional terraced homes in Ramsbottom and Tottington to family properties in Bury and Bolton, buyers have very different budgets and requirements.

And I think it’s important to remember that national averages don’t always reflect what is happening on our doorstep.

Some people might find that buying a property locally costs more each month than renting something similar.

Others might discover that, with a larger deposit or a different mortgage arrangement, purchasing remains an attractive option.

There’s no universal answer.

What matters is looking at your individual circumstances rather than making decisions based purely on headlines.

Is now actually a bad time to buy?

Personally, I think trying to time the property market perfectly is incredibly difficult.

People often tell themselves they’ll buy when mortgage rates fall.

And that sounds sensible.

But what happens if lower mortgage rates encourage more people to start looking?

You could find yourself competing with more buyers for the same properties.

Equally, buying now isn’t automatically the right decision.

If your finances are stretched, your circumstances are uncertain, or you might need to move again in a year or two, renting may offer valuable flexibility.

For me, the most important question isn’t whether property prices or mortgage rates will rise or fall next year.

It’s whether buying makes sense for your life and finances today.

My advice to first-time buyers

If you’re thinking about purchasing your first home, I’d encourage you to do three things.

1. Firstly, speak to a qualified mortgage adviser before you start seriously viewing properties. Understand exactly what you can borrow and what the repayments would look like.
2. Secondly, look beyond the monthly mortgage payment. Consider the deposit, stamp duty where applicable, legal fees, surveys, maintenance and the general costs of running a home.
3. And finally, think about how long you’re likely to stay in the property.

Buying somewhere you can comfortably afford and enjoy living in for several years is very different from purchasing simply because you feel pressured to get onto the ladder.

The bigger picture

I still believe homeownership is a fantastic long-term ambition for many people.

But I also think we need to be realistic.

The days of automatically assuming that a mortgage will be cheaper than renting are, at least for now, behind us.

That doesn’t make buying a bad decision.

It simply means buyers need to look at the bigger picture.

Because owning a home isn’t just about what you pay each month.

It’s about stability, flexibility, financial security and building something for the future.

And those things have different values to different people.

Thinking about buying your first home?

At Bowman Estates, we’re an independent, family-run estate agency helping people buy and sell properties throughout Ramsbottom, Bury, Bolton and the surrounding areas.

Whether you’re taking your first step onto the property ladder, looking for your next family home or simply exploring your options, we’re always happy to help.

Ring the office on 01706 310171, email sales@bowmanestatesltd.com, or if you have a home to sell first, book a free, no-obligation valuation.

Bowman Estates. Modern Marketing, Traditional Values.

www.bowmanestatesltd.com