Should you rent or buy?
Enter your numbers and see exactly when buying beats renting — based on real UK costs including stamp duty, mortgage interest, and opportunity cost.
Updated for 2026 SDLT thresholds · England & Northern Ireland
Your details
Land Registry UKHPI 29yr CAGR blended with Savills 5yr forecast
What would you pay to rent a similar property?
The holding period affects when buying pays off
These defaults are based on UK historical averages. Adjust to model your specific expectations.
% of property value per year
If renting, your deposit could be invested
Breakeven reached
Buying wins at year 3
After 3 years, buying leaves you wealthier than renting and investing. Over your 10-year horizon you come out ahead.
£2,076
mortgage + maintenance + insurance
£1,600
£476/mo cheaper now
Upfront costs to buy
Deposit
£35,000
Stamp duty (SDLT)
£7,500
Fees (est.)
£2,300
Price-to-rent ratio
18.2
property price ÷ annual rent
Below 16 favours buying · 17–20 comparable · above 25 favours renting. Most UK cities sit between 18–30.
Which path leaves you wealthier?
Where the lines cross is your breakeven year. The renter invests the full upfront cash the buyer spends — deposit, stamp duty, and fees — in stocks at 7% p.a. Rent rises at 2.5% p.a., shrinking the renter's monthly surplus over time. Buyer wealth deducts selling costs (2.5% + £1k) at exit. Both paths start with the same total cash.
How sensitive is the answer?
Small changes in assumptions significantly shift the breakeven point. Here's how three scenarios compare with your current inputs.
Conservative
Low growth · high costs
Breakeven
Year 10
At your 10-yr horizon
Buying wins by yr 102% appreciation · 1.5% maintenance · 2% rent rise
Base case
UK historical averages
Breakeven
Year 3
At your 10-yr horizon
Buying wins by yr 34.5% appreciation · 1% maintenance · 2.5% rent rise
Optimistic
Strong market · low costs
Breakeven
Year 2
At your 10-yr horizon
Buying wins by yr 25% appreciation · 0.8% maintenance · 3% rent rise
What this calculator actually measures
Most rent vs buy tools just compare mortgage payments to rent. That's incomplete. Here's what we model.
Net wealth, not monthly cost
We track total wealth for each path year by year. Buyer wealth = home equity minus selling costs (2.5% + £1k), SDLT, and fees. Renter wealth = the same upfront cash compounded in stocks, plus monthly savings invested whenever rent is lower than owning costs.
Rent inflation eats the renter's surplus
Rent rises every year — by default at 2.5% p.a. As rent climbs, the renter's monthly surplus shrinks and eventually flips: the buyer becomes the one with money left over to invest each month. This is a key driver of the breakeven crossover.
Why the breakeven year matters
Buying nearly always wins in the long run — equity and house price appreciation compound powerfully. The real question is whether you'll stay long enough to reach the crossover. Stamp duty and closing costs typically take 5–8 years to recoup. Most UK markets breakeven at 6–12 years.
Frequently asked questions
It depends on your local market, how long you plan to stay, and the mortgage rate you can access. In high price-to-rent ratio areas (above 25), renting is often cheaper short-term. In most UK cities, buying becomes financially advantageous after 5–10 years once you account for equity building and the opportunity cost of your deposit.
The price-to-rent ratio is the property price divided by the annual rent for a comparable home. A ratio below 16 generally favours buying; 17–20 is roughly comparable; above 25 favours renting. Most UK cities sit between 18–30. It's a quick screening tool — the full calculation above gives a more complete picture.
The general rule is 5–7 years. Stamp duty, solicitor fees, and estate agent costs at eventual sale total 5–8% of the property value. You need time in the property to recoup these through equity building and price appreciation. If you're likely to move within 3–4 years, renting is almost always cheaper.
Not necessarily. The deposit you don't tie up in a property can be invested and earn returns — this calculator accounts for that opportunity cost. Rent also buys you flexibility, freedom from maintenance bills, and the ability to move for work or life changes. The 'renting is throwing money away' narrative ignores the very real costs of mortgage interest, maintenance, and transaction fees that never build equity.
Beyond the purchase price, UK buyers pay: Stamp Duty Land Tax (0–12% depending on price and buyer type), solicitor and conveyancing fees (£1,500–£3,000), survey costs (£400–£1,500), mortgage arrangement fees (£500–£2,000), and ongoing maintenance typically estimated at 1% of the property value per year. When you eventually sell, estate agent fees (1–1.5%) and legal costs add a further 2–3%. This calculator uses 2.5% + £1,000 for selling costs.
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