Rent vs buy calculator · England
Rent vs buy in South East: is it cheaper to rent or buy?
Buying leaves you £30,697 better off after 7 years. Owning a 2-bed terraced house costs about £2,151 a month, against £1,456 to rent the same size home.
- After 7 years
- Buy +£30,697
- Difference in net wealth
- Monthly cost to own
- £2,151
- Mortgage £1,676, of which £506 is capital
- Monthly cost to rent
- £1,456
- Rent £1,273 plus council tax
- Median price
- £325,000
- terraced house
- Cash needed to buy
- £33,750
- £32,500 deposit + £1,250 SDLT
- Price-to-rent ratio
- 21.3
- Price divided by a year of rent
Renting vs buying in South East by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £220,000 | £993 | +£346 | Buy £35,742 |
| 2 bed | £325,000 | £1,273 | +£695 | Buy £30,697 |
| 3 bed | £400,000 | £1,552 | +£865 | Buy £31,940 |
| 4+ bed | £600,000 | £2,213 | +£1,402 | Buy £17,836 |
Average rent and house prices in South East
The ONS average private rent in South East is £1,426 a month (Aug 2026, provisional), up 3.0% on a year earlier. The median price paid is £380,000 (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 £2,198 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in South East: FAQs
Is it cheaper to rent or buy in South East?
For a 2-bed home in South East, owning costs about £2,151 a month and renting about £1,456, both including council tax. Buying leaves you £30,697 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 South East?
The ONS average private rent in South East is £1,426 a month across all home sizes (Aug 2026, provisional), with £993 for 1 bed, £1,273 for 2 bed, £1,552 for 3 bed, £2,213 for 4 or more bed. Rents rose 3.0% over the past year.
What is the average house price in South East?
The median price paid in South East is £380,000 (ONS median price paid, year ending Mar 2026). The calculator uses £325,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in South East?
A first-time buyer paying £325,000 would pay £1,250 in SDLT. With a 10% deposit of £32,500, the cash needed on day one is about £33,750.
What is the price-to-rent ratio in South East?
About 21.3: the 2-bed price is 21.3 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in South East?
On the default assumptions, a 1-bed home gives buying its strongest position: buying ahead by £35,742 after 7 years.
How many years until buying pays off in South East?
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.