New research from Hamptons indicates that over half of first-time buyers are now facing higher monthly mortgage payments compared to their previous rent. In September, 56% of first-time buyers took on mortgage payments that were greater than their former rental costs. This figure marks the highest proportion in at least a decade and compares to 33% in September 2022.
The average monthly mortgage payment for former renters reached £1,227 in September. Buyers are now paying an average of £1.09 in mortgage repayments for every £1 previously spent on rent, a shift from September 2022 when buyers paid 90p for every £1 of rent.
Deposit size influences these costs, with buyers facing higher mortgage payments typically having an average deposit of 9%. In contrast, those whose mortgage payments were lower than their previous rent generally put down a 17% deposit.
Older first-time buyers are experiencing the largest increases. In September, 67% of buyers in their 40s had mortgage payments above their previous rent, with an average increase of 18.2%. For buyers in their 30s, 58% faced higher payments, seeing an average rise of 6.9%. Buyers in their 20s fared better, with fewer than half (47%) paying more, and their average monthly mortgage costs were 7.5% below their previous rent.
Meanwhile, rents on newly let properties continue to rise, with annual rental growth across Great Britain reaching 2.7% in September. This is the fastest pace since November 2024, bringing the average monthly rent for a newly let home to £1,433.