Rent vs buy calculator · England
Rent vs buy in Tower Hamlets: is it cheaper to rent or buy?
Renting leaves you £39,620 better off after 7 years. Owning a 2-bed terraced house costs about £5,189 a month, against £2,554 to rent the same size home.
- After 7 years
- Rent +£39,620
- Difference in net wealth
- Monthly cost to own
- £5,189
- Mortgage £4,332, of which £1,308 is capital
- Monthly cost to rent
- £2,554
- Rent £2,418 plus council tax
- Median price
- £840,000
- terraced house
- Cash needed to buy
- £116,000
- £84,000 deposit + £32,000 SDLT
- Price-to-rent ratio
- 28.9
- Price divided by a year of rent
Renting vs buying in Tower Hamlets by home size
| Bedrooms | Price | Rent / mo | Owning vs renting / mo | After 7 yrs |
|---|---|---|---|---|
| 1 bed | £470,000 | £1,992 | +£844 | Buy £64,175 |
| 2 bed | £840,000 | £2,418 | +£2,635 | Rent £39,620 |
| 3 bed | £756,500 | £2,750 | +£1,802 | Buy £30,884 |
| 4+ bed | £491,000 | £3,378 | −£416 | Buy £220,021 |
Average rent and house prices in Tower Hamlets
The ONS average private rent in Tower Hamlets is £2,453 a month (Aug 2026, provisional), up 3.5% on a year earlier. The median price paid is £491,000 (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 £1,634 a year (Band C) and is paid whether you rent or buy, so it does not change the verdict.
Renting or buying in Tower Hamlets: FAQs
Is it cheaper to rent or buy in Tower Hamlets?
For a 2-bed home in Tower Hamlets, owning costs about £5,189 a month and renting about £2,554, both including council tax. Renting leaves you £39,620 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 Tower Hamlets?
The ONS average private rent in Tower Hamlets is £2,453 a month across all home sizes (Aug 2026, provisional), with £1,992 for 1 bed, £2,418 for 2 bed, £2,750 for 3 bed, £3,378 for 4 or more bed. Rents rose 3.5% over the past year.
What is the average house price in Tower Hamlets?
The median price paid in Tower Hamlets is £491,000 (ONS median price paid, year ending Mar 2026). The calculator uses £840,000 for a terraced house, the property type typical for a 2-bed home.
How much is stamp duty on an average home in Tower Hamlets?
A first-time buyer paying £840,000 would pay £32,000 in SDLT. With a 10% deposit of £84,000, the cash needed on day one is about £116,000.
What is the price-to-rent ratio in Tower Hamlets?
About 28.9: the 2-bed price is 28.9 times a year of rent. Higher ratios favour renting; lower ratios favour buying.
Which home size is best value to buy in Tower Hamlets?
On the default assumptions, a 4+-bed home gives buying its strongest position: buying ahead by £220,021 after 7 years.
Areas with a similar price-to-rent ratio
Browse every local authority.