Rent vs buy calculator · England
Rent vs buy in Lambeth: is it cheaper to rent or buy?
Renting leaves you £60,570 better off after 7 years. Owning a 2-bed terraced house costs about £5,504 a month, against £2,494 to rent the same size home.
- After 7 years
- Rent +£60,570
- Difference in net wealth
- Monthly cost to own
- £5,504
- Mortgage £4,590, of which £1,386 is capital
- Monthly cost to rent
- £2,494
- Rent £2,342 plus council tax
- Median price
- £890,000
- terraced house
- Cash needed to buy
- £123,500
- £89,000 deposit + £34,500 SDLT
- Price-to-rent ratio
- 31.7
- Price divided by a year of rent
Renting vs buying in Lambeth by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £470,250 | £1,882 | +£956 | Buy £55,064 |
| 2 bed | £890,000 | £2,342 | +£3,010 | Rent £60,570 |
| 3 bed | £1,155,000 | £2,682 | +£4,258 | Rent £138,942 |
| 4+ bed | £1,350,000 | £3,715 | +£4,393 | Rent £108,373 |
Average rent and house prices in Lambeth
The ONS average private rent in Lambeth is £2,525 a month (Aug 2026, provisional), up 3.7% on a year earlier. The median price paid is £555,000 (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 £1,820 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in Lambeth: FAQs
Is it cheaper to rent or buy in Lambeth?
For a 2-bed home in Lambeth, owning costs about £5,504 a month and renting about £2,494, both including council tax. Renting leaves you £60,570 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 Lambeth?
The ONS average private rent in Lambeth is £2,525 a month across all home sizes (Aug 2026, provisional), with £1,882 for 1 bed, £2,342 for 2 bed, £2,682 for 3 bed, £3,715 for 4 or more bed. Rents rose 3.7% over the past year.
What is the average house price in Lambeth?
The median price paid in Lambeth is £555,000 (ONS median price paid, year ending Mar 2026). The calculator uses £890,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in Lambeth?
A first-time buyer paying £890,000 would pay £34,500 in SDLT. With a 10% deposit of £89,000, the cash needed on day one is about £123,500.
What is the price-to-rent ratio in Lambeth?
About 31.7: the 2-bed price is 31.7 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in Lambeth?
On the default assumptions, a 1-bed home gives buying its strongest position: buying ahead by £55,064 after 7 years.
Areas with a similar price-to-rent ratio
Browse every local authority.