Britain’s most expensive and cheapest places to buy or rent a home revealed

The most expensive and cheapest places to buy or rent in Britain have been revealed.

Aberdeen tops the list of the cheapest cities for first-time buyers, while the most expensive is perhaps unsurprising: London, where average prices tend to be higher than the rest of the country.

The picture is similar for the most expensive places to rent, with the capital also at the top of that list.

On the other hand, renters should also head north if they want to live in the cheapest city to rent, Carlisle, in Cumbria.

The figures were based on monthly mortgage and rental costs.

Home buying figures calculated by Rightmove assume first-time buyers in Scotland and Wales have a 20 per cent deposit, and first-time buyers in England have a 25 per cent deposit.

The deposit size was based on UK Finance averages, which revealed that more and more first-time buyers are choosing longer payment terms to improve their affordability.

As such, the payback period used in Rightmove’s calculations was 35 years. Rightmove also assumed that the typical first-time buyer property had two bedrooms or less.

The average asking price in Aberdeen is £102,601, with an average monthly mortgage payment of £406 a month.

The most expensive city is followed by Bradford, with an average asking price of £107,929, and Sunderland, which comes in third with an average asking price of £111,263.

For those in the rental market, the most expensive place to rent outside of London is Oxford, where a small or two-bedroom house costs £1,561 a month.

At the other end of the scale, the cheapest town for a tenant looking for a two-bedroom or smaller property is Carlisle, where those rents cost £607 a month.

Mortgage rates are slightly higher than a year ago, but have stabilized since the July 2023 peak.

Rightmove explained that this has helped those looking to move earlier this year.

The average mortgage payment for a typical first-time buyer looking for a property with two bedrooms or less is £53 more than a year ago, compared to £81 for renters.

This means that those who can afford to save a deposit of at least 20 per cent find it cheaper to pay a monthly mortgage than a rent in each of Britain’s largest cities.

Mark Harris, of mortgage broker SPF Private Clients, said: ‘We remain a nation of aspirational homeowners, despite higher mortgage rates and the difficulty of getting a deposit.

‘Renting can offer more flexibility but also less security and, more importantly, ends up costing more than buying your own home.

‘However, the high cost of home ownership, especially in London and the South East, means it is virtually impossible to get on the property ladder without financial help from family members.

‘Longer mortgage terms are inevitable as borrowers try to make monthly costs more affordable but of course they will end up making many more payments over an extended period of time.

“It’s worth opting for a longer term to help with affordability calculations and then trying to overpay to reduce the term and interest, when you can afford it.”

Meanwhile, soaring rents in Britain mean the cost of renting a small or two-bedroom house has risen 39 per cent in the last five years.

This compares to a 19 per cent increase in the cost of purchasing a similar type of property.

Rightmove said that even if a first-time buyer had a deposit of less than 15 per cent and tried to pay off their mortgage over a shorter period of 25 years, it would still be cheaper to pay a mortgage than rent in 39 of the 50 countries in the world. Britain. larger cities outside London.

Rightmove’s Tim Bannister said: “These latest figures highlight why so many people remain determined to get on the ladder, as rising rental costs have meant buying remains attractive even with higher mortgage rates.”

‘Longer mortgage terms are becoming more common as a way to improve overall affordability and reduce monthly payments, although first-time buyers should be aware of what they are paying in interest compared to their actual mortgage.

“Without improvements in the supply of good quality, affordable rental housing in Britain, owning your own home is likely to remain the end goal for those who can scrape together their deposit and borrow what they need from a mortgage lender .’