Affordable Renting

Carlisle Emerges as the Most Affordable City for Renters in Britain

A recent analysis has identified Carlisle as the most affordable city in Britain for renters. The average advertised rent for a two-bedroom or smaller property in Carlisle is just £607 per month.

On the other end of the spectrum, Oxford is the most expensive city outside of London, with average rents for similar properties reaching £1,561 per month.

This study, which concentrated on properties suitable for first-time buyers (two bedrooms or fewer), compared the average monthly rents and mortgage payments across Britain's largest cities.

According to UK Finance data, the average deposit for first-time buyers is 20% in Scotland and Wales and 25% in England. Moreover, more buyers are opting for longer mortgage repayment terms to make monthly payments more affordable. The study’s average mortgage payment calculations reflect these trends.

The 10 Most Affordable Cities for Renters in Britain

1. Carlisle - £607/month
2. Aberdeen - £611/month
3. Bradford - £620/month
4. Sunderland - £629/month
5. Hull - £634/month
6. Stoke-on-Trent - £642/month
7. Middlesbrough - £645/month
8. Dundee - £652/month
9. Liverpool - £658/month
10. Nottingham - £665/month

Note: Monthly mortgage payment figures assume first-time buyers in Scotland and Wales have a 20% deposit, and those in England have a 25% deposit, based on UK Finance data on mortgage trends. Mortgage repayment is calculated over 35 years.

For example, the average asking price for a typical first-time buyer property in Aberdeen is £102,602, resulting in an average monthly mortgage payment of £406. This assumes a 20% deposit and a 35-year repayment period at an average five-year fixed mortgage rate of 4.84%.

The 10 Most Expensive Cities for Renters in Britain

1. Oxford - £1,561/month
2. Brighton - £1,450/month
3. Edinburgh - £1,400/month
4. Cambridge - £1,350/month
5. Reading - £1,340/month
6. Bristol - £1,320/month
7. London (excluding Central) - £1,300/month
8. Bournemouth - £1,250/month
9. Bath - £1,220/month
10. Exeter - £1,200/month

Renting vs. Buying: The Financial Reality

The study also revealed that the average monthly mortgage payment for a first-time buyer property in Great Britain (two bedrooms or fewer) is now £53 higher than last year, compared to an £81 increase for renters. Despite the rising costs, it remains cheaper to pay a mortgage than rent in all of Britain’s largest cities, including London, for those who can afford the average deposit.

Over the past five years, the cost of renting a two-bedroom or smaller home has surged by 39%, compared to a 19% increase in the cost of buying a similar property. Even with a smaller deposit of 15% and a shorter repayment term of 25 years, mortgage payments remain more affordable than renting in 39 out of Britain’s 50 largest cities outside of London.

Conclusion

While renting remains the more flexible option for many, the financial benefits of buying, especially for those who can manage the upfront deposit, are clear. With property prices rising at a slower pace than rent, homeownership continues to be a more cost-effective long-term solution in many of Britain’s cities.