Rent vs buy calculator · England
Rent vs buy in Dorset: is it cheaper to rent or buy?
Buying leaves you £36,776 better off after 7 years. Owning a 2-bed terraced house costs about £1,843 a month, against £1,172 to rent the same size home.
- After 7 years
- Buy +£36,776
- Difference in net wealth
- Monthly cost to own
- £1,843
- Mortgage £1,392, of which £420 is capital
- Monthly cost to rent
- £1,172
- Rent £967 plus council tax
- Median price
- £270,000
- terraced house
- Cash needed to buy
- £27,000
- £27,000 deposit + £0 SDLT
- Price-to-rent ratio
- 23.3
- Price divided by a year of rent
Renting vs buying in Dorset by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £177,500 | £732 | +£352 | Buy £34,389 |
| 2 bed | £270,000 | £967 | +£671 | Buy £36,776 |
| 3 bed | £330,000 | £1,191 | +£807 | Buy £44,917 |
| 4+ bed | £477,500 | £1,684 | +£1,197 | Buy £52,258 |
Average rent and house prices in Dorset
The ONS average private rent in Dorset is £1,056 a month (Aug 2026, provisional), up 4.9% on a year earlier. The median price paid is £340,000 (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 £2,458 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in Dorset: FAQs
Is it cheaper to rent or buy in Dorset?
For a 2-bed home in Dorset, owning costs about £1,843 a month and renting about £1,172, both including council tax. Buying leaves you £36,776 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 Dorset?
The ONS average private rent in Dorset is £1,056 a month across all home sizes (Aug 2026, provisional), with £732 for 1 bed, £967 for 2 bed, £1,191 for 3 bed, £1,684 for 4 or more bed. Rents rose 4.9% over the past year.
What is the average house price in Dorset?
The median price paid in Dorset is £340,000 (ONS median price paid, year ending Mar 2026). The calculator uses £270,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in Dorset?
A first-time buyer paying £270,000 would pay £0 in SDLT. With a 10% deposit of £27,000, the cash needed on day one is about £27,000.
What is the price-to-rent ratio in Dorset?
About 23.3: the 2-bed price is 23.3 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in Dorset?
On the default assumptions, a 4+-bed home gives buying its strongest position: buying ahead by £52,258 after 7 years.
Areas with a similar price-to-rent ratio
Browse every local authority.