Nearly half of renters would buy a home immediately if mortgage repayments matched their current rent, highlighting a growing disconnect between perception and reality in housing affordability.
Research from Mortgage Advice Bureau shows 47% of renters would move straight into homeownership if monthly costs were comparable, while 31% say matching or beating rental payments is one of their biggest motivations to buy.
For the specialist and bridging market, the findings point to a significant pool of pent-up demand – but one that remains highly sensitive to affordability signals, lender criteria and market confidence.
While deposit requirements remain a barrier, the data suggests monthly outgoings are now the key psychological hurdle. Many renters assume owning is more expensive on a month-to-month basis, delaying decisions even where borrowing may be achievable.
LONG-TERM WEALTH
At the same time, appetite for ownership remains strong. Just 17% of renters say they prefer renting, with most citing lifestyle factors such as having control over their home or building long-term wealth as primary drivers.
Rachel Geddes (main picture), Strategic Lender Relationship Director at Mortgage Advice Bureau, says: “For many renters, the key calculation is no longer just the deposit – it’s whether the monthly mortgage payment could match what they already pay in rent.
“What we’re seeing is a shift in mindset, with buyers increasingly focused on their monthly outgoings and whether homeownership feels manageable in the context of their current finances.”
FIRST-STEPS
She adds: “Without clear comparisons between renting and owning, it’s easy for many to assume that buying is out of reach. Digital tools such as our affordability calculator can help give buyers a clearer idea of what they may be able to borrow and what their monthly payments could look like.
“With the support of an expert mortgage adviser, understanding what’s possible – particularly in terms of monthly costs – can be the difference between holding off and taking that first step onto the property ladder.
“For many, that clarity could be the ‘sign’ they’ve been waiting for to kickstart their homebuying journey.”
