Rent vs buy calculator · England
Rent vs buy in Cheltenham: is it cheaper to rent or buy?
Buying leaves you £41,504 better off after 7 years. Owning a 2-bed terraced house costs about £2,023 a month, against £1,272 to rent the same size home.
- After 7 years
- Buy +£41,504
- Difference in net wealth
- Monthly cost to own
- £2,023
- Mortgage £1,573, of which £475 is capital
- Monthly cost to rent
- £1,272
- Rent £1,096 plus council tax
- Median price
- £305,000
- terraced house
- Cash needed to buy
- £30,750
- £30,500 deposit + £250 SDLT
- Price-to-rent ratio
- 23.2
- Price divided by a year of rent
Renting vs buying in Cheltenham by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £200,000 | £869 | +£350 | Buy £43,936 |
| 2 bed | £305,000 | £1,096 | +£752 | Buy £41,504 |
| 3 bed | £370,500 | £1,354 | +£886 | Buy £49,330 |
| 4+ bed | £600,000 | £1,908 | +£1,707 | Buy £26,669 |
Average rent and house prices in Cheltenham
The ONS average private rent in Cheltenham is £1,261 a month (Aug 2026, provisional), up 4.8% on a year earlier. The median price paid is £325,000 (ONS median price paid, year ending Mar 2026).
Default scenario: 2-bed home, 7 years stay, 10% deposit, 4.80% fixed mortgage, monthly difference invested in a S&S ISA at 7.5%. Council tax is £2,106 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in Cheltenham: FAQs
Is it cheaper to rent or buy in Cheltenham?
For a 2-bed home in Cheltenham, owning costs about £2,023 a month and renting about £1,272, both including council tax. Buying leaves you £41,504 better off after 7 years. This assumes a 2-bed home, 7 years stay, 10% deposit, 4.80% fixed mortgage, monthly difference invested in a S&S ISA at 7.5%.
What is the average rent in Cheltenham?
The ONS average private rent in Cheltenham is £1,261 a month across all home sizes (Aug 2026, provisional), with £869 for 1 bed, £1,096 for 2 bed, £1,354 for 3 bed, £1,908 for 4 or more bed. Rents rose 4.8% over the past year.
What is the average house price in Cheltenham?
The median price paid in Cheltenham is £325,000 (ONS median price paid, year ending Mar 2026). The calculator uses £305,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in Cheltenham?
A first-time buyer paying £305,000 would pay £250 in SDLT. With a 10% deposit of £30,500, the cash needed on day one is about £30,750.
What is the price-to-rent ratio in Cheltenham?
About 23.2: the 2-bed price is 23.2 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in Cheltenham?
On the default assumptions, a 3-bed home gives buying its strongest position: buying ahead by £49,330 after 7 years.
Areas with a similar price-to-rent ratio
Browse every local authority.