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Scottish homeowners over £2,000 better off annually than renters


15 March 2023

  • Renting costs have risen 64% in Scotland over the last decade, compared to 43% for homeowners of equivalent properties. 
  • Homeowners now pay £2,295 less annually than those renting similar homes.
  • Scotland has the UK’s biggest gap between home owning and renting costs (of 21%).


The monthly cost of owning a home for first-time buyers in Scotland is now £727 -  £191 (21%) lower than the monthly cost of renting the equivalent property, according to the latest Bank of Scotland Owning vs Renting Review.

The analysis, which is based on housing costs for first-time buyers with a mortgage on a three-bed home compared to the average monthly rent of the same property type, found that the £727 owners in Scotland are now paying, compares to £918 for renters, each month.

Since 2012, monthly costs to rent have increased by 64% (and up 31% 2021 vs 2022), with the comparable homeowning costs up 43%. 

Rent remains high

Although the rent cap introduced by the Scottish Government in October 2022 remains in place, a lack of supply relative to demand continues to put pressure on the cost of renting a property in Scotland. This means the nation has the greatest gap proportionately between owning and renting costs of anywhere in the UK, at 21%.

Graham Blair, Mortgages Director, Bank of Scotland, said: “Our latest analysis shows that Scottish homeowners now save over a fifth in housing costs compared to renters each year – the biggest proportionate gap between owners and renters of any region or nation in the UK. 

“While the Scottish Government’s rent cap is currently still in place, renting costs went up by almost a third in 2022, compared to the year before. This means there’s still a lot of pressure on first-time buyers, many of whom will be trying to balance high rental costs with raising the average £33,000 needed for a house deposit.”

First-time buyer costs

The average deposit for Scottish first-time buyers fell marginally at the start of 2023, compared to the same point in 2022, at £33,288 vs £35,512. 

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