house prices<\/a> and average rental figures.<\/p>\nWhile the study considered potential mortgage payments, it did not account for additional costs such as legal fees or other ongoing expenses associated with home ownership.<\/p>\n
London was excluded from the analysis due to its significantly higher property prices and different affordability dynamics.<\/p>\n
The research found that the typical 5pc deposit needed could be around \u00a311,412, based on an average first-time buyer property price of \u00a3228,233.<\/p>\n
In Manchester, based on the average first-time buyer house price of \u00a3234,000, homeowners could save 11.6pc each year (\u00a31,836) by owning a home rather than renting.<\/p>\n
This is based on the average monthly mortgage costing \u00a31,164, compared to the average rent cost of \u00a31,317 per month.<\/p>\n
Among the major cities outside London, the largest difference between owning and renting was found in Glasgow, where mortgage payments are as much as 32pc cheaper than rent.<\/p>\n
Home buyers could potentially save up to \u00a3396 a month, or \u00a34,752 annually, compared to renting, according to calculations by Lloyds.<\/p>\n
With the average first-time buyer property price standing at \u00a3172,000, a deposit of merely \u00a38,600 might be sufficient for some individuals to step onto the property ladder, it suggested.<\/p>\n
![](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/10\/1_Rent-prices.jpg\")
Buying a house could be more affordable than renting(Image: PA)<\/p>\n
Amanda Bryden, head of mortgages at Lloyds, commented: “We know that saving for a deposit is one of the biggest hurdles for first-time buyers.<\/p>\n
“With rents having risen sharply over the last two years, many are already managing monthly payments that are higher than a typical mortgage.<\/p>\n
“That’s why low-deposit mortgages could be the right solution for many \u2013 helping people move from renting to owning sooner than they thought possible.<\/p>\n
“It’s also important to consider other upfront costs like legal fees and moving expenses \u2013 but for most, the long-term savings will outweigh these.”<\/p>\n
Whilst purchasing a property may work out cheaper than renting in certain situations, some individuals may choose to rent for reasons including greater flexibility and the ability to relocate for employment opportunities.<\/p>\n
Ms Bryden added: “The impact of growing equity in your own home \u2013 money that would otherwise have been lost in rent \u2013 means a more secure financial future.<\/p>\n
“For anyone thinking about buying, speaking to a mortgage adviser or broker is a great first step.”<\/p>\n
The major UK cities where it is cheaper to buy a home than rent:<\/strong><\/p>\nManchester<\/p>\n
Average first-time buyer house price: \u00a3234,000<\/p>\n
Amount needed for 5% deposit: \u00a311,700<\/p>\n
Monthly mortgage cost: \u00a31,164<\/p>\n
Monthly rent: \u00a31,317<\/p>\n
Percentage saved from owning a home rather than renting: 11.6 percent<\/p>\n
Monthly saving: \u00a3153<\/p>\n
Annual saving: \u00a31,836<\/p>\n
Glasgow<\/p>\n
Average first-time buyer house price: \u00a3172,000<\/p>\n
Amount needed for 5% deposit: \u00a38,600<\/p>\n
Monthly mortgage cost: \u00a3855<\/p>\n
Monthly rent: \u00a31,251<\/p>\n
Percentage saved from owning a home rather than renting: 31.7 percent<\/p>\n
Monthly saving: \u00a3396<\/p>\n
Annual saving: \u00a34,752<\/p>\n
Newcastle<\/p>\n
Average first-time buyer house price: \u00a3180,000<\/p>\n
Amount needed for 5% deposit: \u00a39,000<\/p>\n
Monthly mortgage cost: \u00a3895<\/p>\n
Monthly rent: \u00a31,112<\/p>\n
Percentage saved from owning a home rather than renting: 19.5 percent<\/p>\n
Monthly saving: \u00a3217<\/p>\n
Annual saving: \u00a32,604<\/p>\n
Edinburgh<\/p>\n
Average first-time buyer house price: \u00a3243,000<\/p>\n
Amount needed for 5% deposit: \u00a312,150<\/p>\n
Monthly mortgage cost: \u00a31,208<\/p>\n
Monthly rent: \u00a31,392<\/p>\n
Percentage saved from owning a home rather than renting: 13.2 percent<\/p>\n
Monthly saving: \u00a3184<\/p>\n
Annual saving: \u00a32,208<\/p>\n
Bristol<\/p>\n
Average first-time buyer house price: \u00a3311,000<\/p>\n
Amount needed for 5% deposit: \u00a315,550<\/p>\n
Monthly mortgage cost: \u00a31,547<\/p>\n
Monthly rent: \u00a31,778<\/p>\n
Percentage saved from owning a home rather than renting: 13 percent<\/p>\n
Monthly saving: \u00a3231<\/p>\n
Annual saving: \u00a32,772<\/p>\n
Nottingham<\/p>\n
Average first-time buyer house price: \u00a3183,000<\/p>\n
Amount needed for 5% deposit: \u00a39,150<\/p>\n
Monthly mortgage cost: \u00a3910<\/p>\n
Monthly rent: \u00a3996<\/p>\n
Percentage saved from owning a home rather than renting: 8.6 percent<\/p>\n
Monthly saving: \u00a386<\/p>\n
Annual saving: \u00a31,032<\/p>\n
Leeds<\/p>\n
Average first-time buyer house price: \u00a3209,000<\/p>\n
Amount needed for 5% deposit: \u00a310,450<\/p>\n
Monthly mortgage cost: \u00a31,039<\/p>\n
Monthly rent: \u00a31,098<\/p>\n
Percentage saved from owning a home rather than renting: 5.4 percent<\/p>\n
Monthly saving: \u00a359<\/p>\n
Annual saving: \u00a3708<\/p>\n
Liverpool<\/p>\n
Average first-time buyer house price: \u00a3167,000<\/p>\n
Amount needed for 5% deposit: \u00a38,350<\/p>\n
Monthly mortgage cost: \u00a3830<\/p>\n
Monthly rent: \u00a3864<\/p>\n
Percentage saved from owning a home rather than renting: 3.9 percent<\/p>\n
Monthly saving: \u00a334<\/p>\n
Annual saving: \u00a3408<\/p>\n
Birmingham<\/p>\n
Average first-time buyer house price: \u00a3208,000<\/p>\n
Amount needed for 5% deposit: \u00a310,400<\/p>\n
Monthly mortgage cost: \u00a31,034<\/p>\n
Monthly rent: \u00a31,068<\/p>\n
Percentage saved from owning a home rather than renting: 3.2 percent<\/p>\n
Monthly saving: \u00a334<\/p>\n
Annual saving: \u00a3408<\/p>\n
Join the Manchester Evening News WhatsApp group <\/strong>HERE<\/strong><\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Owning a home with just a 5 per cent deposit could be more affordable in these nine areasBuying…\n","protected":false},"author":2,"featured_media":487728,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8813],"tags":[748,393,4884,1269,42093,2465,8086,6792,10003,1270,16,15],"class_list":{"0":"post-487727","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-manchester","8":"tag-britain","9":"tag-england","10":"tag-great-britain","11":"tag-house-prices","12":"tag-lloyds-bank","13":"tag-manchester","14":"tag-manchester-city-centre","15":"tag-mortgages","16":"tag-property-news","17":"tag-renting","18":"tag-uk","19":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115348651745006516","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/487727","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=487727"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/487727\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/487728"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=487727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=487727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=487727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/10\/0_01K74FJ63ECKRVHYP6F96WKGNY.jpg\")
Buying a home with a mortgage in some major cities across Britain could be cheaper than renting (Image: Peter Byrne\/PA Wire )<\/p>\n