Portsmouth has been revealed as the top UK city where it’s cheaper to buy a house than to rent, according to new research from property and conveyancing solicitors Jones Whyte. The study, which analysed 2024 ONS data, identified 14 local authorities where monthly mortgage payments undercut the average rent.
In Portsmouth, the average mortgage cost is £1,128 per month, 12.99% (£168) cheaper than the typical rent of £1,296. This makes it the most cost-effective city for buyers compared to renters in the current market.
Burnley claimed second place, with average mortgage payments of £507—12.96% (£75) less than renting at £582 per month.
Manchester ranked third, with monthly mortgage costs of £1,124 beating rents by 11.18% (£142).
Bristol and Newcastle rounded out the top five. In Bristol, mortgages are 8.72% cheaper than rents, with buyers saving £152 a month. In Newcastle, buyers save £75, or 7.42%, compared to renting.
Other areas making the top 10 included Southampton, Tower Hamlets, Nottingham, Southwark, and Lincoln. While savings were smaller in these regions, they still highlight a trend where homeownership is becoming more cost-effective in certain parts of the country.
Michael McLean, partner and solicitor advocate at Jones Whyte, said: “Historically, renting tended to be cheaper than buying. However, this is becoming less true as time goes on, which prompted us to look at just how much cheaper renting was than buying a house, and if there were any areas where it was cheaper to buy than rent.
“We found 14 local authorities where a representative mortgage cost less than average rents, including major cities such as Manchester, and even a borough of London in Tower Hamlets. This might signify how desirable moving to these areas may be, and that rents may have risen more quickly in these areas in response to this when compared to housing costs.”
The findings suggest that rising rents, especially in urban areas, are making homeownership increasingly appealing for those who can secure a mortgage. With mortgage costs calculated on a 4% interest rate, a 25-year term, and a 15% deposit, the study highlights the potential for long-term savings in a housing market still facing affordability challenges.
