Average rent is increasing. Is now the “right” time to buy a home?

As inflation rises, many renters are finding that one of their largest outgoings has increased. If your rent has risen, you may be thinking that now is the right time to buy a home.

It can be difficult to know when is the “right” time to purchase your first home. After all, you may worry about buying before the market falls. Or you may not be sure if your circumstances provide the stability needed. 

Average rent has increased by 17% in two years

Renters have likely seen their monthly outgoings increase in the last two years, including rent.

According to figures from Rightmove, the average cost of rent has increased by 17% – the equivalent of £128 a month – in the last two years.

For some people, it could mean that purchasing a property could reduce monthly outgoings, as well as allow them to get on the property ladder. 

If your rent has increased, weighing up the pros and cons of buying a home could make sense. However, the figures also suggest that outgoings for first-time buyers are on the rise. 

The average property purchased by a first-time buyer now costs more than £224,000

While buying a home could provide you with security and may be part of your long-term plan, rising rent doesn’t mean you should jump straight into searching for a home.

According to the Rightmove data, the average property purchased by a first-time buyer has reached a record high of £224,943 – a 13% increase when compared to two years ago.

This has a knock-on effect on outgoings. First-time buyers are having to save larger deposits and average monthly mortgage repayments are up 22%. 

So, while now may seem like a good time to buy, you need to consider the effect it could have on your finances. Do you have a large enough deposit to buy a house in your desired area? Would the monthly mortgage repayment be affordable?

While there is some speculation that property prices will fall or the pace of growth will slow down, there are no guarantees.

The Rightmove research found that demand from first-time buyers has increased by 35%, which could push prices up even further. 

The “right” time depends on your goals and circumstances 

While changing economic factors may encourage you to start thinking about buying your first home, ultimately the “right” time will depend on your circumstances.

Property prices may fall, but if you don’t have the deposit needed, aren’t ready to put down roots, or have a stable income, renting could make sense.

Similarly, purchasing when there’s a suggestion that property prices could fall may still be right for you. Nobody wants to purchase an asset that falls in value shortly after. But keep in mind that, historically, property prices have increased over the long term. So, if you’re ready to take the step, it could make sense, even amid the current uncertainty. 

What’s important when you’re ready to buy a house is that you understand how it will affect your finances.

Working with a mortgage broker can help you answer questions like:

  • How much can I borrow?
  • How much will my monthly repayments be?
  • How would rising interest rates affect outgoings?
  • Which type of mortgage is right for me?
  • What length mortgage term should I choose? 

Understanding the long-term effect it could have can give you more confidence about stepping onto the property ladder.

In addition, a mortgage broker can help you secure a mortgage that suits your needs. Whether you want the flexibility to overpay, a competitive mortgage rate, or a specialist lender because of your circumstances, finding the right provider could help your home ownership dreams come true. 

Are you ready to buy your first home?

If you’re a first-time buyer and ready to purchase your first home, please contact us. We can help you understand the different mortgage options and navigate the home buying process. 

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

Stratagem Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Stratagem Financial Planning Limited is entered on the Financial Services Register under reference 819330. Registered in England, Company number 11456453 Registered Office: 1 Park Lane, Poynton, Cheshire, SK12 1RD.


If you wish to register a complaint, please contact David Shirley at david@stratagemfp.co.uk or on 01625 839 839.

Please be assured we treat complaints seriously. A summary of our internal complaints handling procedures is available on request. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 023 4567.