Analysis from Rightmove suggests static house prices and lower mortgage rates are benefitting south of England buyers more than those elsewhere in the UK, with London buyers potentially saving £181 a month on mortgage payments.
Buyers in the South East could save £120 a month on an averagely priced home in the region,with South West buyers saving £106. In the North West, the saving is just £24 a month. Across Great Britain, the average monthly mortgage payment is currently £1,506 per month, £84 a month less than last year. The average asking price for a home is £370,257.
The analysis is based on buyers purchasing a home at the average asking price, with a two-year fixed mortgage rate, and spreading the cost of the mortgage over 30 years.
Rightmove’s property expert Colleen Babcock said the difference in savings is due to heated competition in London and the south, as well as more properties being liable for stamp duty. She added:
“However, it’s still much more expensive to purchase a home in London and the south of England compared to other areas of Great Britain, so affordability is still stretched despite the increase in purchasing power.”
Mary-Lou Press, president of NAEA Propertymark, said any reduction in monthly outgoings would be welcomed by homeowners. She commented:
“Average house prices have risen by over £40,000 in only five years, and in London specifically by around £90,000 alone. Therefore, a cooling, especially in areas across the south, will be welcomed by many and is due, in part, to ceiling prices being met because of the stretching of affordability for many people.
“A slow tapering in interest rates has allowed lenders to introduce more competitive mortgage products and has decreased the monthly cost for those with variable or tracker mortgages, allowing them to refinance to lower rates, and making it easier for homeowners to afford larger or more expensive properties by making monthly payments cheaper.”
Regional mortgage payments
| Region | Average asking price | Average asking price change year-on-year | Average mortgage payment | Average mortgage payment change year-on-year |
| East Midlands | £291,578 | 0.9% | £1,240 | -£54 |
| East of England | £418,837 | 0.2% | £1,794 | -£90 |
| London | £675,074 | -1.1% | £2,927 | -£181 |
| North East | £194,737 | 0.5% | £831 | -£39 |
| North West | £270,275 | 3.2% | £1,123 | -£24 |
| Scotland | £199,146 | 2.6% | £833 | -£23 |
| South East | £479,982 | -0.7% | £2,073 | -£120 |
| South West | £382,531 | -1.3% | £1,662 | -£106 |
| Wales | £267,528 | 0.9% | £1,138 | -£49 |
| West Midlands | £293,645 | -0.1% | £1,260 | -£66 |
| Yorkshire and The Humber | £258,568 | 2.0% | £1,052 | -£36 |
Source: Rightmove
