Renting is now cheaper than a mortgage, says Rightmove

Rightmove said the average advertised rent in Britain is now £1,547 per month, while the average monthly mortgage payment is £1,670.

The mortgage figure is based on a typical asking price of £373,971 at a two-year fixed rate of 5.35%, with a 20% deposit and a term of 30 years.

The total difference in monthly payments between a mortgage and rent is not intended to take into account the fact that the mortgagor is paying for an asset.

Mortgage payments are below the cost of rent each month in Scotland and the North East, where property prices are lower.

Buying remains more expensive per month than renting in London and the South East due to higher house prices.

The latest Moneyfacts Rate Watch shows that the average interest rate is fixed over two years now stands at 5.81%an increase of 98 basis points from 4.83% in early March, but down from a recent high of 5.90% earlier this month.

Rightmove property expert Colleen Babcock said: “Mortgage payments have risen quite a bit for first-time buyers in a short space of time. It will be interesting to see whether more buyers will turn to temporary renting while rates remain high, especially when monthly costs could be higher than average rental prices and the timing of the rate cuts is still unclear.”