THE Forest of Dean is one of the least affordable areas in the UK for homeowners, with mortgage repayments 58.3 per cent higher than renting, according to new data.

Following from this week’s story placing the Forest in the top 20 fastest rising house prices in England - Property Buyers Today this time ranked it the sixth least affordable area for homeowners.

Conducting a study, it 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 per cent deposit and a 25-year mortgage at an interest rate of 5.46 per cent, reflecting the 2024 average for two-year fixed-rate mortgages at 90 per cent loan-to-value.

Local authorities were ranked according to the percentage difference between average monthly rent and mortgage costs, highlighting where buying delivers greater value and where renting makes more financial sense.

The Forest of Dean mortgage repayments are 58.3 per cent more expensive than renting. Monthly mortgage costs stand at £1,183.64 compared to rental prices of £747.58, a difference of £436.06.

Above the Forest in the rankings was North Norfolk, Rutland, Maldon, Malvern Hills, Powys and the Derbyshire Dales - which topped the list with a percentage difference of 65.6 per cent for renting over buying.

At the other end of the rankings, Burnley in Lancashire offered the most substantial savings for homeowners, with monthly mortgage repayments 28.7 per cent lower than average rental costs. The average monthly mortgage payment in Burnley stands at £399.13, compared to average rental costs of £559.67, representing a monthly saving of £160.53 for those who buy.

Saif Derzi, Founder of Property Buyers Today, said: "These findings show the stark regional variations in housing affordability across England and Wales. In areas like Burnley, buyers can save substantial amounts every month compared to renters, making the property ladder more accessible.

"The data challenges the idea that buying is always more expensive in the short term, as this doesn't hold true in many areas of the country. For many people in these high-ranking locations, buying can provide immediate financial benefits alongside the long-term advantages of property ownership.

"However, these results do not take into account the additional costs associated with homeownership, such as maintenance, insurance, and potential fluctuations in interest rates. Prospective buyers should weigh these expenses carefully against the apparent monthly savings, as such responsibilities typically fall to landlords in rental arrangements.”

The findings highlighted a clear North–South divide in the property market. Northern local authorities generally offer better value for buyers compared to renters. Of the top 20 areas where buying is cheaper than renting, 17 are located in the North of England or Wales.

Interestingly, London boroughs show more mixed results. While most remain more expensive to buy than to rent, Tower Hamlets stands out as the highest-ranked London area at 24th place, with average mortgage repayments 6.6 per cent lower than rental costs.