After several years of rising rents and affordability challenges, there’s a quiet but noticeable shift happening in the UK housing market: more renters are beginning to look seriously at buying their first home.
Better saving habits, stabilising house prices and more competitive mortgage deals are helping many first-time buyers take the next step.
Book Your Free Mortgage ReviewWhy Renters Are Turning Back to Buying
The past few years have been tough for would be buyers: high rates, stretched affordability and strict lending rules kept many renting for longer.
But 2025 has now started to see this looking different and we expect to see a similar pattern into 2026.
Rents have surged with the average UK rent reached £1,345 in October 2025, up 5.5% year-on-year (HomeLet Rental Index).
Outside London, the average monthly rent now stands at £1,138, compared with £2,736 in the capital (Rightmove Q3 2025).
Mortgage rates are easing with many two year fixed deals now available and mortgage rates are available from sub 4% through to 5%, rather than the previous 6%+.
Inflation has fallen from the peaks of the last 2 years, giving lenders room to compete again.
With rents rising faster than wages (ONS, Oct 2025), many renters are realising their monthly payments could now go towards their own mortgage instead.
In some regions, it’s now cheaper or comparable to buy than rent, especially across the North, Midlands and Scotland, depending on deposit size and local prices.
The New First-Time Buyer Profile
Today’s first-time buyers look different from those a decade ago. Many are stepping onto the ladder later often in their late 20s or early 30s, but they are better prepared. We have previously cited in another article that the average first time buyer in the UK is 34 years old.
What’s changed:
- Larger deposits: thanks to structured savings, Lifetime ISAs, and family support.
- Improved credit awareness: with tools like Experian Boost and CheckMyFile helping buyers strengthen their profiles.
- Informed choices: online comparison tools and mortgage brokers offering digital pre-approval have made preparation easier than ever.
With rent at record highs and rates stabilising below 5%, more UK renters are realising it now costs the same to buy as to rent.
According to the English Housing Survey 2023–24, 57% of private renters expect to buy a property in future, and 27% plan to use help from family or friends for a deposit (Gov UK). That confidence is growing as market conditions improve.
Market Conditions Supporting the Shift
Several economic and policy trends are creating an opening for first-time buyers:
- Falling inflation and stable base rates are supporting mortgage affordability.
- Government schemes like First Homes and Shared Ownership remain active across the UK, helping buyers with smaller deposits.
- Increased lender flexibility with both specialist and high street lenders now offering more products for those with variable income or limited credit history.
- Rent recognition: some lenders have begun using proven rent-payment history to support mortgage applications.
Together, these factors mean more renters can finally turn “someday” plans into “this year” decisions.
Call Us 
0800 0320 316
0800 0320 316Or Book a Free Mortgage Appointment
How Renters Are Getting Mortgage Ready
- Building savings more consistently – using automatic saving apps like Plum or Chip to build deposits faster.
- Improving credit health – checking all three UK credit agencies and tidying accounts before applying.
- Securing a Mortgage in Principle (MIP) – to understand borrowing potential early and make offers confidently.
- Seeking advice sooner – mortgage brokers are now guiding clients as early as 12–18 months before they’re ready to buy.
The shift back to homeownership isn’t about luck, it’s about preparation meeting opportunity.
A Renewed Focus on Stability
Many renters are motivated not just by cost, but by control fixed mortgage payments offer predictability that renting rarely does. Owning a home remains one of the most tangible long-term wealth-building steps for UK households.
Even with affordability tests still tight, the trend suggests that homeownership is regaining its appeal, particularly among those with stable employment and focused financial planning.
Get StartedQuick-Fire FAQs (UK Homeownership Trends) Craig Leigh, Mortgage Adviser.
Is it really cheaper to buy than rent in the UK right now?
In some regions, yes. Outside London and the South East, monthly mortgage payments are often comparable to local rents particularly when rates are below 5%.
What schemes can help first-time buyers in 2025?
Shared Ownership, First Homes, and Lifetime ISAs continue to support eligible buyers. New regional initiatives are also launching to assist with deposits and affordability.
How much deposit do I need to buy?
Many UK lenders offer 5% – 10% deposit products, though a larger deposit can unlock lower interest rates and broader product choice.
Are mortgage rates going down further?
While the market has stabilised, further cuts depend on inflation and Bank of England base rate decisions. Mortgage advisers can help identify competitive fixed-rate options now available.
Can renters use their rent payment history to help qualify?
Yes. Some UK lenders now consider consistent rent payments as part of affordability checks a positive trend for long-term renters looking to buy.
Author: Craig Leigh, Mortgage Adviser
Call Us 0800 0320 316
Or Book a Free Mortgage Appointment
Important notices
Your home may be repossessed if you do not keep up repayments on your mortgage. If you consolidate existing borrowing, you may pay more over the long term.
View all posts by Craig Leigh 
