New analysis reveals the only Welsh town where buying beats renting

New analysis has identified the local authorities where making monthly mortgage repayments is cheaper than paying rent, with a Welsh town offering significant savings for homeowners.

The study, conducted by Property Buyers Today, analysed 314 local authorities in England 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 then ranked according to the largest percentage difference between average monthly rental payments and mortgage repayments, revealing where homeownership provides the greatest financial advantage.

While the majority of the top ten best places to get a mortgage rather than rent were in England, Methyr Tydfil in south Wales took tenth place.

In Methyr, average rental prices reached £677.33 per month while average monthly mortgage repayments totalled £578.06.

With mortgages -14.7% cheaper than renting in Merthyr Tydfil, the town offers a monthly saving of £100 on average for those looking to purchase a home.

To add to this, house prices in the area are dropping. According to provisional figures from the Office of National Statistics, the average house price in Merthyr Tydfil was £140,000 in September 2025, down 6.3% from September 2024.

At the opposite end of the ranking, some local authorities present a very different picture with mortgage repayments significantly exceeding rental costs.

Again an English authority, Derbyshire Dales, ranked as the least affordable area for buyers compared to renters, with mortgage repayments 65.6% more expensive than average rental prices.

However, Powys in Wales took the second spot among the least affordable areas to pay a mortgage rather rent.

Mortgage repayments in Powys were 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.

Additionally, the average house price in Powys in September 2025 was £241,000, up 2.1% from September 2024. Although stark, this was lower than the overall rise in Wales (2.7%) over the same period.