Islington Suburbs Where Buying Homes Now Costs Less Than Renting

Monthly mortgage payments now run cheaper than rents for two-bedroom flats in parts of Highbury and Barnsbury. Estate agents logged the crossover on listings compiled through June 2026.

The shift follows three Bank of England rate cuts since March and a 4 per cent drop in average Islington sale prices from their 2025 peak. Tenants who once faced annual rent rises of 6 to 8 per cent now weigh fixed-rate deals that lock payments for five years. The change hits households earning between £45,000 and £65,000 hardest, the group that dominates applications logged by Islington Council’s housing register.

Highbury and Barnsbury lead the reversal

Highbury Fields recorded the clearest gap. A two-bed flat listed at £525,000 carries a 25-year repayment mortgage of £1,720 a month at current 3.8 per cent fixed rates. Equivalent rents on the same street sit at £1,950. In Barnsbury, properties around Canonbury Square show a £180 monthly saving for buyers versus renters. Both neighbourhoods sit within the N5 and N1 postcodes tracked by the council’s quarterly affordability report published last week.

Local agents point to stock released by probate sales near Essex Road and stock from landlords exiting after the 2025 licensing rule changes. Islington Council’s own shared-ownership scheme at the Packington Estate recorded 42 applications in the last quarter, up from 27 a year earlier.

Numbers behind the crossover

Rightmove data for the borough show the average asking rent for a two-bed flat reached £2,050 in May. The same dataset lists the median sale price at £610,000. At 3.8 per cent over 25 years that produces a £2,010 repayment. The margin is narrow but consistent across 18 listings examined in the past fortnight. By contrast, outer London zones 3 and 4 still show rents trailing mortgages by £150 to £300.

Buyers need a 10 per cent deposit and a clean credit file. First-time buyer schemes run by the council require household income below £90,000 and priority for those already on the housing register. Viewings at the Highbury Barn estate agent office have risen 22 per cent since the start of June.

Households considering a switch should run current mortgage illustrations through an independent broker before making offers. Interest rates remain sensitive to any fresh inflation print due next month.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.