UK Buy vs Rent Tool

Compare the long-term costs of buying a home versus renting in the UK

Quick presets

Buying

£
%
£
%
(Reduced stamp duty on properties up to £500k)
(5% surcharge on additional properties)
Stamp Duty (SDLT)£0

Renting

£
%
£
£
%

Monthly Cost Comparison

Buying

Mortgage£1,491
Council Tax£150
Insurance£25
Maintenance£250
Total£1,916

Renting

Rent£1,400
Council Tax£150
Contents Insurance£13
Total£1,563

Renting is cheaper by

£353/month

Break-Even Point

When buying becomes financially better than renting

4 months

After this point, buying builds more wealth than renting and investing the difference

Comparison Over Time

YearsNet (Buying)Net (Renting)Better Option
5 years£2,555-£41,511Buyby £44,066
10 years-£23,641-£138,793Buyby £115,152
20 years-£22,959-£371,024Buyby £348,064
30 years-£21,481-£663,280Buyby £641,798

Net position = Assets (equity or investments) - Cumulative costs paid

Net Position Over Time

Compares your net wealth under each scenario

Buying = Equity - Costs paid | Renting = Investments - Rent paid

Monthly Cost Breakdown

How Is This Calculated?

Assumptions & Limitations

  • Property prices used are inputs you provide — actual prices vary significantly by location and property type.
  • Interest rates change over time. Results reflect the rate you enter and assume it stays fixed for the full mortgage term.
  • Maintenance costs default to 1% of the property value per year, which is a common rule of thumb but not a guarantee.
  • Property growth and rent increase rates are assumptions, not predictions. Past trends do not guarantee future performance.
  • This tool covers Stamp Duty Land Tax (SDLT) for England and Northern Ireland only. Scotland (LBTT) and Wales (LTT) use different tax systems.
  • This tool is for guidance and educational purposes only. It does not constitute financial advice. Consult a qualified financial adviser before making property decisions.

About This Tool

This tool compares the total cost of buying a home versus renting over time. It factors in upfront costs (deposit, stamp duty, fees), ongoing costs (mortgage, maintenance, insurance), and the opportunity cost of tying up your deposit in property rather than investing it.

It is designed specifically for the UK market. Stamp duty rates follow the SDLT bands for England and Northern Ireland, and default values reflect typical UK figures for mortgage rates, rent levels, and property growth.

SDLT rates accurate as of April 2025. Tool last updated April 2025.