Rent vs buy calculator · England
Rent vs buy in Newcastle upon Tyne: is it cheaper to rent or buy?
Buying leaves you £105,707 better off after 7 years. Owning a 2-bed terraced house costs about £1,317 a month, against £1,195 to rent the same size home.
- After 7 years
- Buy +£105,707
- Difference in net wealth
- Monthly cost to own
- £1,317
- Mortgage £954, of which £288 is capital
- Monthly cost to rent
- £1,195
- Rent £1,007 plus council tax
- Median price
- £185,000
- terraced house
- Cash needed to buy
- £18,500
- £18,500 deposit + £0 SDLT
- Price-to-rent ratio
- 15.3
- Price divided by a year of rent
Renting vs buying in Newcastle upon Tyne by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £150,000 | £814 | +£105 | Buy £84,924 |
| 2 bed | £185,000 | £1,007 | +£122 | Buy £105,707 |
| 3 bed | £215,000 | £1,194 | +£115 | Buy £126,386 |
| 4+ bed | £345,475 | £1,837 | +£253 | Buy £191,726 |
Average rent and house prices in Newcastle upon Tyne
The ONS average private rent in Newcastle upon Tyne is £1,215 a month (Aug 2026, provisional), up 9.3% on a year earlier. The median price paid is £200,000 (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 £2,260 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in Newcastle upon Tyne: FAQs
Is it cheaper to rent or buy in Newcastle upon Tyne?
For a 2-bed home in Newcastle upon Tyne, owning costs about £1,317 a month and renting about £1,195, both including council tax. Buying leaves you £105,707 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 Newcastle upon Tyne?
The ONS average private rent in Newcastle upon Tyne is £1,215 a month across all home sizes (Aug 2026, provisional), with £814 for 1 bed, £1,007 for 2 bed, £1,194 for 3 bed, £1,837 for 4 or more bed. Rents rose 9.3% over the past year.
What is the average house price in Newcastle upon Tyne?
The median price paid in Newcastle upon Tyne is £200,000 (ONS median price paid, year ending Mar 2026). The calculator uses £185,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in Newcastle upon Tyne?
A first-time buyer paying £185,000 would pay £0 in SDLT. With a 10% deposit of £18,500, the cash needed on day one is about £18,500.
What is the price-to-rent ratio in Newcastle upon Tyne?
About 15.3: the 2-bed price is 15.3 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in Newcastle upon Tyne?
On the default assumptions, a 4+-bed home gives buying its strongest position: buying ahead by £191,726 after 7 years.
Areas with a similar price-to-rent ratio
Browse every local authority.