For decades, it’s been seen as a simple truth: “Buying is always better than renting.”
But in 2025, with mortgage rates higher than they’ve been in over a decade, that old saying isn’t quite as straightforward as it used to be.
So – what’s actually cheaper right now: buying or renting?
💰 Monthly Costs: The Reality Check
Let’s take a look at the numbers.
A few years ago, buyers often paid less per month than renters because interest rates were historically low.
Now, with mortgage rates hovering between 4.5% and 6%, that gap has narrowed – and in some cases flipped.
Example:
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A £250,000 home with a 10% deposit and a 30-year mortgage at 5.5% = around £1,270/month
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The same home might rent for £1,000–£1,100/month in today’s market
✅ Renting is currently cheaper month-to-month in many parts of North Devon and the UK.
But that’s not the whole story.
🏠 Buying: The Long-Term View
When you own your home, part of each mortgage payment goes towards building equity – it’s money you’ll eventually get back when you sell.
Even though mortgage costs are higher right now, homeownership offers benefits renting never can:
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You’re investing in your future, not your landlord’s
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Property values in North Devon remain resilient long-term
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You have freedom to improve and personalise your home
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You’re protected from rent rises (which have hit record levels in 2025)
In short: buying can still make sense – if you can comfortably afford the repayments.
🏘️ Renting: Flexibility and Simplicity
Renting still has its perks – especially in uncertain times:
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You can move easily for work or lifestyle reasons
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No maintenance or repair costs
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No legal fees, surveys, or stamp duty
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You’re not exposed to property market fluctuations
For many, renting provides breathing space – especially if you’re saving for a deposit or waiting for mortgage rates to drop again.
⚖️ The Real Answer: It Depends
Whether renting or buying is cheaper depends on:
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Your deposit size
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Mortgage rate and term
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Property price and location
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How long you plan to stay
If you’re likely to move again within a few years, renting can often be the smarter choice.
If you’re ready to settle and build equity, buying still wins long-term.
💬 Need Honest Advice? Let’s Chat
At Collyers, we help buyers, sellers, and renters make informed decisions based on facts, not myths.
We’ll happily talk you through:
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What’s happening locally
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How mortgage rates affect your options
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Whether now’s the right time to move – or wait
📍 View Our Latest Properties
📍 Book a Free Consultation
Collyers Estate Agents – Honest Advice. Local Knowledge. Award-Winning Service.
