Rent vs buy calculator · England
Rent vs buy in Merton: is it cheaper to rent or buy?
Buying leaves you £30,069 better off after 7 years. Owning a 2-bed terraced house costs about £4,223 a month, against £2,183 to rent the same size home.
- After 7 years
- Buy +£30,069
- Difference in net wealth
- Monthly cost to own
- £4,223
- Mortgage £3,481, of which £1,051 is capital
- Monthly cost to rent
- £2,183
- Rent £2,024 plus council tax
- Median price
- £675,000
- terraced house
- Cash needed to buy
- £91,250
- £67,500 deposit + £23,750 SDLT
- Price-to-rent ratio
- 27.8
- Price divided by a year of rent
Renting vs buying in Merton by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £399,975 | £1,639 | +£778 | Buy £83,092 |
| 2 bed | £675,000 | £2,024 | +£2,040 | Buy £30,069 |
| 3 bed | £865,000 | £2,407 | +£2,795 | Close £14,770 |
| 4+ bed | £2,600,000 | £3,267 | +£12,329 | Rent £599,176 |
Average rent and house prices in Merton
The ONS average private rent in Merton is £2,172 a month (Aug 2026, provisional), up 5.4% on a year earlier. The median price paid is £550,000 (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 £1,908 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in Merton: FAQs
Is it cheaper to rent or buy in Merton?
For a 2-bed home in Merton, owning costs about £4,223 a month and renting about £2,183, both including council tax. Buying leaves you £30,069 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 Merton?
The ONS average private rent in Merton is £2,172 a month across all home sizes (Aug 2026, provisional), with £1,639 for 1 bed, £2,024 for 2 bed, £2,407 for 3 bed, £3,267 for 4 or more bed. Rents rose 5.4% over the past year.
What is the average house price in Merton?
The median price paid in Merton is £550,000 (ONS median price paid, year ending Mar 2026). The calculator uses £675,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in Merton?
A first-time buyer paying £675,000 would pay £23,750 in SDLT. With a 10% deposit of £67,500, the cash needed on day one is about £91,250.
What is the price-to-rent ratio in Merton?
About 27.8: the 2-bed price is 27.8 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in Merton?
On the default assumptions, a 1-bed home gives buying its strongest position: buying ahead by £83,092 after 7 years.
How many years until buying pays off in Merton?
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.