Rising rent costs

Why renting costs more?

First-time buyers are paying much more in rent than before. Did you know that over the last ten years, first-time buyers have spent an extra £46,621¹ on rent before buying a home? Yes, really! 

Many now rent for nearly 13 years¹ before stepping onto the property ladder: 

• Average total rent: £163,047¹ (up from £116,427¹ in 2015) 

• Average monthly rent in the UK: £1,348¹ 

• London average: £2,253¹ per month 

Rising rents make it tough to save for a deposit. This can slow down the move to homeownership and strain long-term finances. Colin Bell, Perenna’s COO & Co-Founder, says that while some people choose to rent for life, many end up paying more each year without building anything for the future. 

Buying vs renting 

So, what does this mean for people deciding whether to rent or buy? 

Owning a home has clear long-term benefits: 

• Security: Your home is yours for as long as you want it. 

• Control: You can decorate or change your home how you like. 

• Investment: When you buy, you own your home, which could then go up in value. 

• Predictable costs: Fixed mortgage payments stay the same, unlike rent, which can rise (This applies to long term fixed rate products; shorter-term or variable-rate mortgages (SVR) may fluctuate.). 

Renting can still be a good short-term choice if you need flexibility or want to avoid upfront costs. But over time, renting often ends up costing more than buying. 

How Perenna can help 

If buying feels overwhelming, here’s how Perenna can make it simpler: 

• Flexible mortgages: Options to suit your needs. 

• Lower deposits: Making buying easier. 

• Guidance: Support throughout the process. 

• Fixed payments: So monthly costs don’t change. 

• Extra flexibility: Short early repayment charges if your circumstances change. 

Ready to explore your options? Find a broker or try our mortgage calculator.  

You could lose your home if you don’t keep up your mortgage repayments.   

Correct at time of publishing. 

¹ Source: This Is Money, “This is how much first-time home owners spend on rent before buying – it’s risen £46,621 in a decade”, 17 Sept 2025