Rent vs buy calculator · England
Rent vs buy in Southwark: is it cheaper to rent or buy?
Renting and buying finish within £1,885 of each other after 7 years: too close to call. Owning a 2-bed terraced house costs about £5,558 a month, against £2,494 to rent the same size home.
- After 7 years
- Close +£1,885
- Difference in net wealth
- Monthly cost to own
- £5,558
- Mortgage £4,641, of which £1,401 is capital
- Monthly cost to rent
- £2,494
- Rent £2,348 plus council tax
- Median price
- £900,000
- terraced house
- Cash needed to buy
- £125,000
- £90,000 deposit + £35,000 SDLT
- Price-to-rent ratio
- 31.9
- Price divided by a year of rent
Renting vs buying in Southwark by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £450,000 | £1,876 | +£840 | Buy £96,025 |
| 2 bed | £900,000 | £2,348 | +£3,064 | Close £1,885 |
| 3 bed | £1,325,000 | £2,732 | +£5,226 | Rent £122,059 |
| 4+ bed | £1,787,500 | £3,608 | +£7,121 | Rent £209,162 |
Average rent and house prices in Southwark
The ONS average private rent in Southwark is £2,474 a month (Aug 2026, provisional), up 5.4% on a year earlier. The median price paid is £535,000 (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 £1,749 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in Southwark: FAQs
Is it cheaper to rent or buy in Southwark?
For a 2-bed home in Southwark, owning costs about £5,558 a month and renting about £2,494, both including council tax. Renting and buying finish within £1,885 of each other after 7 years: too close to call. 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 Southwark?
The ONS average private rent in Southwark is £2,474 a month across all home sizes (Aug 2026, provisional), with £1,876 for 1 bed, £2,348 for 2 bed, £2,732 for 3 bed, £3,608 for 4 or more bed. Rents rose 5.4% over the past year.
What is the average house price in Southwark?
The median price paid in Southwark is £535,000 (ONS median price paid, year ending Mar 2026). The calculator uses £900,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in Southwark?
A first-time buyer paying £900,000 would pay £35,000 in SDLT. With a 10% deposit of £90,000, the cash needed on day one is about £125,000.
What is the price-to-rent ratio in Southwark?
About 31.9: the 2-bed price is 31.9 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in Southwark?
On the default assumptions, a 1-bed home gives buying its strongest position: buying ahead by £96,025 after 7 years.
How many years until buying pays off in Southwark?
The lead first changes hands in year 4 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.