A new study has identified the local authorities in England and Wales where monthly mortgage repayments exceed rental costs, with Powys standing out as the least affordable area in Wales for buyers and offering the greatest savings for renters.

The study, conducted by Property Buyers Today,analysed 314 local authorities inEngland and Wales to uncover where buying a home works out cheaper than renting. Monthly mortgage repayment figures were based on a 10% deposit and a 25-year mortgage at an interest rate of 5.46%, reflecting the 2024 average for two-year fixed-rate mortgages at 90% loan-to-value.

Local authorities were ranked according to the percentage difference between average monthly rent and mortgage costs, highlighting where buying delivers greater value and where renting makes more financial sense.

Powys in Wales ranks as the second least affordable area, behind Derbyshire Dales, with mortgage repayments 65% higher than renting. Buyers face monthly costs of £908.38 compared to rental prices of £550.42, a difference of £357.96 per month.

Saif Derzi, Founder of Property Buyers Today, said:

"These findings show the stark regional variations in housing affordability across England and Wales. In areas like Burnley and Newcastle, buyers can save substantial amounts every month compared to renters, making the property ladder more accessible.

"The data challenges the idea that buying is always more expensive in the short term, as this doesn't hold true in many areas of the country. For many people in these high-ranking locations, buying can provide immediate financial benefits alongside the long-term advantages of property ownership.

"However, these results do not take into account the additional costs associated with homeownership, such as maintenance, insurance, and potential fluctuations in interest rates. Prospective buyers should weigh these expenses carefully against the apparent monthly savings, as such responsibilities typically fall to landlords in rental arrangements.”