The journalists’ service Newspage asked 10 brokers whether it’s cheaper to buy or to rent, the challenges of getting on the ladder and what should be considered before making the leap. 

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Ben Perks, Managing Director at Orchard Financial Advisers: “Renting is expensive and doesn’t give people long-term security. Even with the higher interest rates we are currently seeing, it often works out cheaper month on month to buy a property, especially for youngsters. The biggest hurdle to overcome is getting a deposit. If you’re able to get the deposit together then buying is usually a fantastic option. Nothing beats the feeling you get when you hold the first set of keys to a house you bought, enjoy that moment and take it in — because shortly after the bills all start turning up.”

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Kim McGinley, Director & Specialist Broker at VIBE Finance: “Whether renting or buying is cheaper largely depends on individual circumstances, market conditions and personal goals. Buying a home often proves more cost-effective over the long term, thanks to building equity and potentially benefiting from property value appreciation. However, rising interest rates, hefty deposit requirements and high property prices can make the initial costs of buying challenging to say the least. 

Renting, on the other hand, provides greater flexibility, lower upfront costs, and fewer responsibilities regarding maintenance. Yet, it comes with potential drawbacks like rent increases and limited control over the property. Ultimately, the decision between renting and buying should consider factors like affordability, lifestyle, future plans and financial stability. While buying may offer more stability and potential long-term savings, renting can be a practical choice for those who need flexibility or face barriers to purchasing a property.”

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Ken James, Director at Contractor Mortgage Services: “To buy or to rent, that is the question. It’s a question everyone who has ever rented gets to, normally born out of frustration, as you’re paying someone else’s mortgage and have nothing to show for thousands spent on living in rented accommodation. PM Margaret Thatcher instilled in the British mindset the desire to own our own home, to be king and queen of our own castles and that has stayed with us. Property growth has made many people property rich despite ups and downs in the property market. 

Renting, though, does have its perks, for example if the boiler packs up or repairs needed to be done the onus is not on the tenant but the landlord. Renting is more achievable for many compared to the costs associated with buying a home, so for many this is the first step, but it may not be the last one.”

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Patricia McGirr, founder at Repossession Rescue Network: “Renting versus buying is a tough call these days. Sure, renting gives you flexibility, but you’re often paying the same as a mortgage with nothing to show for it. On the flip side, owning a home comes with hidden costs and can feel like a ball and chain. Interest rates are falling, but with house prices still high, many renters are stuck paying through the nose and can’t save for a deposit. Renting keeps you nimble, but owning builds equity. It’s all about what you can afford as well as what you value more: freedom or long-term investment.”

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Elliott Culley, Director at Switch Mortgage Finance: “Most first-time buyers I deal with end up paying less per month on a mortgage than they were paying on rent. There are upfront costs, such as solicitor costs, but buying a property is cheaper longer term in the majority of cases. Not only is it cheaper long term, all your payments are reducing your overall loan and increasing your equity. It also provides long-term security as you are in full control of where you live and for how long.”

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Chris Barry, director at Thomas Legal: “Annual rental rises and rental demand have outstripped the rise in house prices, which has led to large developers such as Berkeley making the decision to let out their new units instead of sticking to their historical strategy of build to sell. With the cost of borrowing coming down and some mortgage lenders offering products with miminal deposits, clients looking to move out of their parents home should try and buy where possible. 

“Historical house prices have always risen over the longer term so even if house prices drop in the short term, homeowners can expect to enjoy a rise in asset prices over the longer term due to a consistent lack of supply and a growing population. Labour’s commitment to build 1.5m homes in 5 years is ambitious but even if they achieve this, it won’t meet demand. Large private and instituational investors are long on land/real estate for the reason above so now is a good time to buy, especially as value to income ratio is lower than 2007.”

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Simon Bridgland, director at Release Freedom: “The location will make all the difference on what’s more achievable, but deposits aside, buying your own home is still the cheaper option and offers a more secure roof over your head, compared to rental property and fragile rental agreements. For the price of renting a 2-bed house with a garden you could purchase a similar property but with 3 bedrooms for the equivalent monthly cost. 

“That’s not to say that either are considered cheap with many people still unable to muster a deposit or able to borrow enough to buy a house local to where they live and work, forcing them to either remain in rented property, which is scarce for many, or remain with family. Currently, for those who are struggling with gathering a deposit, Barclays’ Springboard and Skipton’s Track Record mortgages could help first-time buyers borrow 100% loan to value.”

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Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Investments: “For many, the property ladder’s bottom rung is now higher than Mount Everest, with ‘generation rent’ trapped in a spiral of soaring rental costs and falling affordability. A competitive mortgage landscape and the potential for further rate cuts has created an environment ripe for buyer activity. Yet, for those stuck in the rental sector, the current affordability crisis is driving inequality between homeowners and renters. 

“The struggle of raising a deposit while paying sky-high rents has led to a growing reliance on multiple high incomes or parental assistance. As the autumn Budget looms, the prospect of a rise in CGT has left many landlords contemplating a swift exit from the property market. Against a backdrop of a dwindling rental supply, the implications of a mass exodus of a third of landlords could devastate the rental market. If landlords flee, renters face a perfect storm of soaring costs and dwindling options, leaving the homeownership dream further out of reach.”

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Darryl Dhoffer, Mortgage Broker at The Mortgage Expert: “Sure, renting seems easy now, but it’s a trap. You’re enriching your landlord, not yourself. Buying a house is like investing in your own piggy bank. The longer you own it, the more it’s worth. Your property value could increase, benefiting you. Location affects rent versus mortgage. Some areas have higher rents than mortgage payments, while others are the opposite. Buying has upfront costs, but in the long run, it’s like building a nest egg for yourself, unlike renting, which benefits your landlord.”

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Michelle Lawson, director at Lawson Financial: “Renting versus buying is and age-old debate. Renting was the cheaper option for quite a period of time, however ,more recently higher interest rates, more pressure, tax and regulation changes on landlords has meant a number have left the market. The supply chain changed. Renters also include workers and busineses who take corporate lets as it is cheaper than hotel accommodation. Owning a property faces similar challenges but with the risk comes certainty and stability that the property is yours solely. The challenge is often the deposit. Ultimately, people buy and rent for different reasons as they always have done.”