Rent vs buy calculator · England
Rent vs buy in City of London: is it cheaper to rent or buy?
Renting leaves you £28,787 better off after 7 years. Owning a 2-bed all property types costs about £4,657 a month, against £2,331 to rent the same size home.
- After 7 years
- Rent +£28,787
- Difference in net wealth
- Monthly cost to own
- £4,657
- Mortgage £3,906, of which £1,179 is capital
- Monthly cost to rent
- £2,331
- Rent £2,232 plus council tax
- Median price
- £757,500
- all property types
- Cash needed to buy
- £103,625
- £75,750 deposit + £27,875 SDLT
- Price-to-rent ratio
- 28.3
- Price divided by a year of rent
Renting vs buying in City of London by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £757,500 | £1,760 | +£2,798 | Rent £83,073 |
| 2 bed | £757,500 | £2,232 | +£2,326 | Rent £28,787 |
| 3 bed | £757,500 | £2,643 | +£1,915 | Buy £18,580 |
| 4+ bed | £757,500 | £3,646 | +£912 | Buy £136,840 |
Average rent and house prices in City of London
The ONS average private rent in City of London is £2,332 a month (Aug 2026, provisional), up 3.5% on a year earlier. The median price paid is £757,500 (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 £1,182 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in City of London: FAQs
Is it cheaper to rent or buy in City of London?
For a 2-bed home in City of London, owning costs about £4,657 a month and renting about £2,331, both including council tax. Renting leaves you £28,787 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 City of London?
The ONS average private rent in City of London is £2,332 a month across all home sizes (Aug 2026, provisional), with £1,760 for 1 bed, £2,232 for 2 bed, £2,643 for 3 bed, £3,646 for 4 or more bed. Rents rose 3.5% over the past year.
What is the average house price in City of London?
The median price paid in City of London is £757,500 (ONS median price paid, year ending Mar 2026). The calculator uses £757,500 for a all property types, the property type typical for a 2-bed home.
How much is stamp duty on an average home in City of London?
A first-time buyer paying £757,500 would pay £27,875 in SDLT. With a 10% deposit of £75,750, the cash needed on day one is about £103,625.
What is the price-to-rent ratio in City of London?
About 28.3: the 2-bed price is 28.3 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in City of London?
On the default assumptions, a 4+-bed home gives buying its strongest position: buying ahead by £136,840 after 7 years.
Areas with a similar price-to-rent ratio
Browse every local authority.