Rent vs buy calculator · England
Rent vs buy in Leicester: is it cheaper to rent or buy?
Buying leaves you £11,278 better off after 7 years. Owning a 2-bed terraced house costs about £1,526 a month, against £1,079 to rent the same size home.
- After 7 years
- Buy +£11,278
- Difference in net wealth
- Monthly cost to own
- £1,526
- Mortgage £1,135, of which £343 is capital
- Monthly cost to rent
- £1,079
- Rent £892 plus council tax
- Median price
- £220,000
- terraced house
- Cash needed to buy
- £22,000
- £22,000 deposit + £0 SDLT
- Price-to-rent ratio
- 20.6
- Price divided by a year of rent
Renting vs buying in Leicester by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £120,000 | £716 | +£24 | Buy £31,376 |
| 2 bed | £220,000 | £892 | +£447 | Buy £11,278 |
| 3 bed | £270,000 | £1,045 | +£593 | Buy £9,371 |
| 4+ bed | £358,000 | £1,453 | +£712 | Buy £17,367 |
Average rent and house prices in Leicester
The ONS average private rent in Leicester is £1,023 a month (Aug 2026, provisional), up 1.6% on a year earlier. The median price paid is £240,750 (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 £2,248 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in Leicester: FAQs
Is it cheaper to rent or buy in Leicester?
For a 2-bed home in Leicester, owning costs about £1,526 a month and renting about £1,079, both including council tax. Buying leaves you £11,278 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 Leicester?
The ONS average private rent in Leicester is £1,023 a month across all home sizes (Aug 2026, provisional), with £716 for 1 bed, £892 for 2 bed, £1,045 for 3 bed, £1,453 for 4 or more bed. Rents rose 1.6% over the past year.
What is the average house price in Leicester?
The median price paid in Leicester is £240,750 (ONS median price paid, year ending Mar 2026). The calculator uses £220,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in Leicester?
A first-time buyer paying £220,000 would pay £0 in SDLT. With a 10% deposit of £22,000, the cash needed on day one is about £22,000.
What is the price-to-rent ratio in Leicester?
About 20.6: the 2-bed price is 20.6 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in Leicester?
On the default assumptions, a 1-bed home gives buying its strongest position: buying ahead by £31,376 after 7 years.
How many years until buying pays off in Leicester?
The lead first changes hands in year 4 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.