Is it better to rent or buy in the UK?
Rent vs Buy Calculator UK
Compare the real cost of renting vs buying in the UK. Accounts for mortgage repayments, Stamp Duty, maintenance, property appreciation, and what your deposit could earn if invested instead.
Enter your details
Buying costs
Renting & comparison
Rate on invested down payment
Over 10 years, our analysis suggests:
🏠 Buying looks favourable
Buying builds £247,022 in equity vs £149,182 if renting and investing the difference.
Break-even point: Year 1
Buy: net equity
£247,022
After 10 years
Rent: invested net worth
£149,182
Down payment invested
Break-even
Year 1
When buying overtakes renting
Net worth comparison over time
View year-by-year breakdown
| Year | Buy equity | Rent portfolio | Buy advantage |
|---|---|---|---|
| Year 1 | £59,502 | £52,558 | +£6,944 |
| Year 2 | £76,980 | £62,560 | +£14,420 |
| Year 3 | £95,215 | £72,753 | +£22,462 |
| Year 4 | £114,240 | £83,136 | +£31,104 |
| Year 5 | £134,089 | £93,704 | +£40,385 |
| Year 6 | £154,799 | £104,455 | +£50,344 |
| Year 7 | £176,407 | £115,385 | +£61,023 |
| Year 8 | £198,953 | £126,486 | +£72,467 |
| Year 9 | £222,477 | £137,754 | +£84,723 |
| Year 10 | £247,022 | £149,182 | +£97,841 |
How this calculator works
In the UK, the rent vs buy calculation is heavily influenced by the Stamp Duty Land Tax on purchase, which represents a significant upfront cost that must be recouped through price appreciation and equity building before buying becomes financially superior.
This calculator models total ownership costs (mortgage repayments, insurance, maintenance, council tax if appropriate) against rental costs, and compares the equity position of a buyer against the invested portfolio of a renter over the same period.
One key factor unique to the UK: the mortgage market requires regular remortgaging (typically every 2–5 years), and rates at remortgage may be higher or lower than your initial rate. This calculator uses a single assumed rate throughout — adjust accordingly for your scenario.
Worked example
- 1Buying: £1,388/month repayment + costs ≈ £1,950/month total
- 2Renting: £1,350/month rising 3%/year
- 3Deposit £42,750 invested at 7% grows to ~£84,000
- 4Property value grows to ~£465,000; equity ~£247,000
- 5Net buying advantage: ~£163,000
Frequently Asked Questions
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Disclaimer: Calculations are estimates for general guidance only and do not constitute regulated financial advice. Rates and costs vary by lender and property location. Stamp Duty Land Tax figures use England rates — Scotland (LBTT) and Wales (LTT) differ. Always consult an FCA-authorised mortgage adviser.