Britain’s most expensive and cheapest places to buy or rent a home revealed

The most expensive and cheapest places to buy or to rent in Britain have been revealed.

Aberdeen tops the list of the cheapest cities for first-time buyers, while the most expensive is perhaps no surprise, London, where average prices tend to be higher than the rest of the country.

It is a similar picture for the most expensive places to rent, with the capital ranked top of that list too.

On the flipside, tenants are also required to head north if they want to live in the cheapest city to rent, Carlisle, in Cumbria.

The cheapest cities for first-time buyers and tenants have been identified by Rightmove

The figures were based on monthly mortgage and rent costs.

Home purchase figures calculated by Rightmove assumed that first-time buyers in Scotland and Wales have a 20 per cent deposit, and first-time buyers in England have a 25 per cent deposit.

The size of deposit was based on averages from UK Finance, which revealed that more first-time buyers are choosing longer repayment terms to improve their affordability.

As such, the repayment term used in the Rightmove calculations was 35 years. Rightmove also assumed that the typical first-time buyer property had two bedrooms or less.

Aberdeen tops the list compiled by Rightmove of the cheapest cities for first-time buyers

The average asking price in Aberdeen is £102,601, with the average monthly mortgage payment at £406 a month.

The most expensive city is followed by Bradford with an average asking price of £107,929 and Sunderland, which is ranked third with an asking price of £111,263.

For those in the rental market, the most expensive place to rent outside of London is Oxford, where an average two-bedroom or small home costs £1,561 a month.

At the other end of the scale, the cheapest city for a tenant who is looking for a two-bedroom or smaller property is Carlisle where such rents are £607 a month.

Mortgage rates are slightly higher than a year ago, but have stabilised since the peak in July 2023.

Rightmove explained that this has helped those looking to move at the start of this year.

The average mortgage payment for a typical first-time buyer looking at a property with two bedrooms or less is £53 more than a year ago, compared to £81 for tenants.

It means that those who can afford to save a good sized deposit of at least 20 per cent, it is cheaper to pay a monthly mortgage than rent in each of the largest cities in Britain.

Winchester is among the most expensive cities for first-time buyers looking for a property with two bedrooms or fewer

Mark Harris, of mortgage broker SPF Private Clients, said: ‘We remain a nation of aspirational homeowners, despite higher mortgage rates and the difficulty in raising a deposit. 

‘Renting may give more flexibility but also less security and crucially ends up costing more than buying your own place.

‘However, the high cost of home ownership, particularly in London and the south east means that it’s practically impossible to get on the housing ladder without financial assistance from family members. 

‘Longer mortgage terms are inevitable as borrowers try to make the monthly costs more affordable but of course they will end up making many more payments over an extended period of time. 

‘It is worth opting for a longer term to help with the affordability calculations and then trying to overpay to reduce the term and interest, as and when you can afford to do so.’

Carlisle in the country of Cumbria is the cheapest city for those looking to rent

Meanwhile, soaring rents across Britain mean that the cost of renting a two-bedroom or small home has increased by 39 per cent in the last five years.

This compares to a jump of 19 per cent in the cost of buying a similar type of property.

Rightmove claimed that even if a first-time buyer had a smaller deposit of 15 per cent and sought to repay their mortgage over a shorter mortgage term of 25 years, it would still be cheaper to pay a mortgage than rent in 39 out of Britain’s 50 largest cities outside of London.

Rightmove’s Tim Bannister said: ‘These latest figures highlight why so many people remain determined to get onto the ladder, as the soaring costs of renting has meant buying has remained attractive even with higher mortgage rates.

‘Longer mortgage-terms are becoming more common as a way to improve overall affordability and reduce monthly payments, though first-time buyers should be aware of what they are paying in interest compared with their actual mortgage.

‘Without improvements to the supply of good quality, affordable rental homes in Great Britain, owning your own home is likely to continue to be the end-goal for those that can get their deposit together, and borrow what they need to from a mortgage lender.’

Best mortgage rates and how to find them

Mortgage rates have risen substantially after the Bank of England’s raised base rate rapidly.

The Bank is now holding rates and expected to cut – leading to mortgage costs coming down – but deals remain far more expensive than two or five years ago. 

If you are looking to buy your first home, move or remortgage, or are a buy-to-let landlord, it’s important to get good independent mortgage advice from a broker who can help you find the best deal. 

To help our readers find the best mortgage, This is Money has partnered with independent fee-free broker L&C.

Our mortgage calculator powered by L&C can let you filter deals to see which ones suit your home’s value and level of deposit.

You can also compare different mortgage fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes, with monthly and total costs shown.

Use the tool at the link below to compare the best deals, factoring in both fees and rates. You can also start an application online in your own time and save it as you go along.

> Compare the best mortgage deals available now

This post first appeared on Dailymail.co.uk