Rightmove’s latest analysis reveals that static house prices combined with falling mortgage rates are delivering the greatest financial relief to homebuyers in the south of England. In London, buyers could save up to £181 per month on mortgage payments compared to last year.

In the South East, the average monthly saving is £120, while buyers in the South West are saving £106. In contrast, buyers in the North West are saving just £24 per month. Across Great Britain, the average monthly mortgage payment is now £1,506, which is £84 less than a year ago. The current average asking price for a property stands at £370,257.

The study is based on a scenario where buyers purchase a property at the average asking price, take out a two-year fixed-rate mortgage, and spread repayments over 30 years.

Rightmove’s property expert Colleen Babcock explained the regional disparity: “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, welcomed the shift, noting: “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 snapshot

Date Source: Rightmove

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Source: Today's Conveyancer