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Since 2015, the gap between the cost of buying a home and renting has grown, with homeownership becoming increasingly less affordable. In the ** of 2025, the house price to rent ratio in the UK stood at . That meant that house price growth has outpaced rental growth by nearly ** percent between 2015 and 2025. The UK's house price to rent ratio was below the average Euro area ratio.

House price to income ratio in the UK

Another indicator for housing affordability is the house price to income ratio, which is calculated by dividing nominal house prices by the nominal disposable income per head. The ratio saw an overall increase between 2015, which was the base year, and 2022. After that, the index declined, but remained close to the average for the Euro area.

Is it more affordable to rent or buy?

There are many things to be considered when comparing buying to renting, such as the ability to qualify for a mortgage and whether prospective homebuyers have sufficient savings for a deposit. Generally, purchasing a home is more affordable than renting one. However, the average monthly savings first-time buyers can achieve have been on the decline. In East of England, where house prices have increased rapidly over the past few years, it was cheaper to rent than to buy in 2022.