Rent vs buy calculator · England
Rent vs buy in Luton: is it cheaper to rent or buy?
Buying leaves you £27,175 better off after 7 years. Owning a 2-bed terraced house costs about £1,849 a month, against £1,295 to rent the same size home.
- After 7 years
- Buy +£27,175
- Difference in net wealth
- Monthly cost to own
- £1,849
- Mortgage £1,418, of which £428 is capital
- Monthly cost to rent
- £1,295
- Rent £1,114 plus council tax
- Median price
- £275,000
- terraced house
- Cash needed to buy
- £27,500
- £27,500 deposit + £0 SDLT
- Price-to-rent ratio
- 20.6
- Price divided by a year of rent
Renting vs buying in Luton by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £160,000 | £907 | +£72 | Buy £44,627 |
| 2 bed | £275,000 | £1,114 | +£554 | Buy £27,175 |
| 3 bed | £338,000 | £1,337 | +£709 | Buy £27,939 |
| 4+ bed | £436,250 | £1,815 | +£819 | Buy £41,273 |
Average rent and house prices in Luton
The ONS average private rent in Luton is £1,222 a month (Aug 2026, provisional), up 2.7% on a year earlier. The median price paid is £315,000 (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 £2,169 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in Luton: FAQs
Is it cheaper to rent or buy in Luton?
For a 2-bed home in Luton, owning costs about £1,849 a month and renting about £1,295, both including council tax. Buying leaves you £27,175 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 Luton?
The ONS average private rent in Luton is £1,222 a month across all home sizes (Aug 2026, provisional), with £907 for 1 bed, £1,114 for 2 bed, £1,337 for 3 bed, £1,815 for 4 or more bed. Rents rose 2.7% over the past year.
What is the average house price in Luton?
The median price paid in Luton is £315,000 (ONS median price paid, year ending Mar 2026). The calculator uses £275,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in Luton?
A first-time buyer paying £275,000 would pay £0 in SDLT. With a 10% deposit of £27,500, the cash needed on day one is about £27,500.
What is the price-to-rent ratio in Luton?
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 Luton?
On the default assumptions, a 1-bed home gives buying its strongest position: buying ahead by £44,627 after 7 years.
How many years until buying pays off in Luton?
The lead first changes hands in year 2 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.