The UK’s average rent has hit a record high of £992 a month, which means it could be cheaper to buy a home than rent one, depending on where you live, said Trussle.

The mortgage broker found that monthly mortgage repayments work out cheaper than the average rent in five UK regions.

In Northern Ireland, first-time buyers could save up to £170 (25%) a month on rent by taking out a 90% loan-to-value mortgage on a flat, whilst tenants in Yorkshire and Humberside could save £50 (7%) a month and those in the West Midlands £40 (5%).

It’s also cheaper to buy a home in the East Midlands and the North West.

Bigger deposits

Trussle figures also show that many first-time buyers have been able to boost deposit sizes during the pandemic. In 2020, only 73% of first-time buyers were able to afford a deposit greater than £15,000, but in 2021 this number increased to 87%.

This could be because people were spending less during national lockdowns, as well as many parents helping out their children.

Miles Robinson, head of mortgages at Trussle, said: “In the last few months many lenders have brought back 90% loan to value mortgages and the recent mortgage guarantee scheme announced by the Government has also seen major banks including Nationwide and Barclays reintroduce 95% LTV deals.

“This is great news for first-time buyers who typically have lower deposits, as these high LTV deals provide an accessible route on to the housing ladder and can often result in more affordable monthly payments than renting. However, we’d advise all buyers to speak to a mortgage broker to ensure they are getting the most suitable deal for their personal circumstances.”