Rent vs buy calculator · England
Rent vs buy in North East: is it cheaper to rent or buy?
Buying leaves you £50,562 better off after 7 years. Owning a 2-bed terraced house costs about £975 a month, against £885 to rent the same size home.
- After 7 years
- Buy +£50,562
- Difference in net wealth
- Monthly cost to own
- £975
- Mortgage £660, of which £199 is capital
- Monthly cost to rent
- £885
- Rent £697 plus council tax
- Median price
- £128,000
- terraced house
- Cash needed to buy
- £12,800
- £12,800 deposit + £0 SDLT
- Price-to-rent ratio
- 15.3
- Price divided by a year of rent
Renting vs buying in North East by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £104,975 | £554 | +£96 | Buy £38,838 |
| 2 bed | £128,000 | £697 | +£91 | Buy £50,562 |
| 3 bed | £171,000 | £835 | +£210 | Buy £56,367 |
| 4+ bed | £299,995 | £1,217 | +£601 | Buy £71,221 |
Average rent and house prices in North East
The ONS average private rent in North East is £788 a month (Aug 2026, provisional), up 5.8% on a year earlier. The median price paid is £170,000 (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 £2,253 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in North East: FAQs
Is it cheaper to rent or buy in North East?
For a 2-bed home in North East, owning costs about £975 a month and renting about £885, both including council tax. Buying leaves you £50,562 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 North East?
The ONS average private rent in North East is £788 a month across all home sizes (Aug 2026, provisional), with £554 for 1 bed, £697 for 2 bed, £835 for 3 bed, £1,217 for 4 or more bed. Rents rose 5.8% over the past year.
What is the average house price in North East?
The median price paid in North East is £170,000 (ONS median price paid, year ending Mar 2026). The calculator uses £128,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in North East?
A first-time buyer paying £128,000 would pay £0 in SDLT. With a 10% deposit of £12,800, the cash needed on day one is about £12,800.
What is the price-to-rent ratio in North East?
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 North East?
On the default assumptions, a 4+-bed home gives buying its strongest position: buying ahead by £71,221 after 7 years.
Areas with a similar price-to-rent ratio
Browse every local authority.