Rent vs buy calculator · England
Rent vs buy in Croydon: is it cheaper to rent or buy?
Buying leaves you £22,729 better off after 7 years. Owning a 2-bed terraced house costs about £2,819 a month, against £1,766 to rent the same size home.
- After 7 years
- Buy +£22,729
- Difference in net wealth
- Monthly cost to own
- £2,819
- Mortgage £2,243, of which £677 is capital
- Monthly cost to rent
- £1,766
- Rent £1,573 plus council tax
- Median price
- £435,000
- terraced house
- Cash needed to buy
- £50,250
- £43,500 deposit + £6,750 SDLT
- Price-to-rent ratio
- 23.0
- Price divided by a year of rent
Renting vs buying in Croydon by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £280,000 | £1,265 | +£433 | Buy £49,088 |
| 2 bed | £435,000 | £1,573 | +£1,054 | Buy £22,729 |
| 3 bed | £547,000 | £1,858 | +£1,440 | Close £2,199 |
| 4+ bed | £725,000 | £2,667 | +£1,697 | Buy £23,621 |
Average rent and house prices in Croydon
The ONS average private rent in Croydon is £1,582 a month (Aug 2026, provisional), up 3.2% on a year earlier. The median price paid is £425,000 (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 £2,311 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in Croydon: FAQs
Is it cheaper to rent or buy in Croydon?
For a 2-bed home in Croydon, owning costs about £2,819 a month and renting about £1,766, both including council tax. Buying leaves you £22,729 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 Croydon?
The ONS average private rent in Croydon is £1,582 a month across all home sizes (Aug 2026, provisional), with £1,265 for 1 bed, £1,573 for 2 bed, £1,858 for 3 bed, £2,667 for 4 or more bed. Rents rose 3.2% over the past year.
What is the average house price in Croydon?
The median price paid in Croydon is £425,000 (ONS median price paid, year ending Mar 2026). The calculator uses £435,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in Croydon?
A first-time buyer paying £435,000 would pay £6,750 in SDLT. With a 10% deposit of £43,500, the cash needed on day one is about £50,250.
What is the price-to-rent ratio in Croydon?
About 23.0: the 2-bed price is 23.0 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in Croydon?
On the default assumptions, a 1-bed home gives buying its strongest position: buying ahead by £49,088 after 7 years.
How many years until buying pays off in Croydon?
The lead first changes hands in year 3 on the default settings. Staying longer spreads stamp duty and selling costs over more years.
Areas with a similar price-to-rent ratio
Browse every local authority.