12 Aug 2025
Rent costs increased more than mortgage costs since 2022
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Research from the Bank of England’s mortgage data showed that monthly rental payments rose by £221 between 2022 and 2025, while mortgage payments increased by £218.
Average costs
The average rent in the UK is now £1,283 per month, whereas the average mortgage payment is £1,154. The reason for the hike in rental costs is down to the high demand for homes in the private sector, as fewer landlords are investing.
Rent vs mortgage costs
There has been an even bigger hike in rental costs in some areas than others – places such as Oldham, Wigan, and Bolton have increased by 31%. In some areas in London, costs have jumped up by £400 since 2022.
Source: Zoopla, 2025
If you would like to get onto the property ladder but are trapped in the rental cycle, there is a 100% deposit-free product available. Also known as the track record mortgage, it allows buyers who haven't owned a property in the last three years to purchase a home.
To find out if you fit the criteria, get in touch: 01628 507477 or email us.
Recent posts
Autumn Budget 2025 Predictions: Mortgage Market
16 days ago
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
19 days ago
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
Delayed Start Mortgages
6 Aug 2025
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
4 Aug 2025
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
25 Jul 2025
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
More information
Trusted by
