Rent vs buy calculator · England
Rent vs buy in Newham: is it cheaper to rent or buy?
Buying leaves you £50,160 better off after 7 years. Owning a 2-bed terraced house costs about £3,010 a month, against £2,137 to rent the same size home.
- After 7 years
- Buy +£50,160
- Difference in net wealth
- Monthly cost to own
- £3,010
- Mortgage £2,450, of which £740 is capital
- Monthly cost to rent
- £2,137
- Rent £1,993 plus council tax
- Median price
- £475,000
- terraced house
- Cash needed to buy
- £56,250
- £47,500 deposit + £8,750 SDLT
- Price-to-rent ratio
- 19.9
- Price divided by a year of rent
Renting vs buying in Newham by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £380,000 | £1,630 | +£667 | Buy £47,852 |
| 2 bed | £475,000 | £1,993 | +£873 | Buy £50,160 |
| 3 bed | £485,000 | £2,212 | +£714 | Buy £71,526 |
| 4+ bed | £440,000 | £2,672 | −£15 | Buy £144,281 |
Average rent and house prices in Newham
The ONS average private rent in Newham is £1,928 a month (Aug 2026, provisional), up 2.9% on a year earlier. The median price paid is £440,000 (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 £1,728 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in Newham: FAQs
Is it cheaper to rent or buy in Newham?
For a 2-bed home in Newham, owning costs about £3,010 a month and renting about £2,137, both including council tax. Buying leaves you £50,160 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 Newham?
The ONS average private rent in Newham is £1,928 a month across all home sizes (Aug 2026, provisional), with £1,630 for 1 bed, £1,993 for 2 bed, £2,212 for 3 bed, £2,672 for 4 or more bed. Rents rose 2.9% over the past year.
What is the average house price in Newham?
The median price paid in Newham is £440,000 (ONS median price paid, year ending Mar 2026). The calculator uses £475,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in Newham?
A first-time buyer paying £475,000 would pay £8,750 in SDLT. With a 10% deposit of £47,500, the cash needed on day one is about £56,250.
What is the price-to-rent ratio in Newham?
About 19.9: the 2-bed price is 19.9 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in Newham?
On the default assumptions, a 4+-bed home gives buying its strongest position: buying ahead by £144,281 after 7 years.
How many years until buying pays off in Newham?
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.