UK rent vs buy calculator 2026
Is it cheaper to rent or buy where you live?
This free rent vs buy calculator compares the full cost of renting against buying the same home in every UK local authority and region. It counts what a simple rent vs mortgage comparison leaves out: the deposit and stamp duty you could invest instead, mortgage interest versus capital, maintenance, selling costs and house price growth.
Renting vs buying: the UK average
- Own a 2-bed home
- £1,606/mo
- Mortgage, upkeep, insurance, council tax
- Rent a 2-bed home
- £1,458/mo
- ONS average rent plus council tax
- After 7 years
- Buy +£73,007
- Difference in net wealth
Buying leaves you £73,007 better off after 7 years. 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%. Change any of these in the calculator above.
How the rent vs buy calculation works
Both households start with the same cash. The buyer spends it on a deposit and stamp duty (LBTT in Scotland, LTT in Wales); the renter invests it. Each month the model pays the mortgage, splitting it into interest and capital, plus maintenance, insurance, service charge and ground rent. The renter pays rent that rises each year with local rent growth.
Whoever pays less that month invests the difference, inside a £20,000 ISA allowance where relevant. At the end of your stay the home is sold, selling costs and any capital gains tax on investments come off, and the two net-wealth figures are compared. Within £5,000 or 2% of the price, the result is called too close to call.
Where buying beats renting the most
| Area | Price | Rent / mo | Lead after 7 yrs |
|---|---|---|---|
| Tewkesbury | £255,000 | £978 | Buy £144,639 |
| Oldham | £170,100 | £879 | Buy £119,320 |
| Folkestone and Hythe | £275,000 | £1,031 | Buy £114,900 |
| Bath and North East Somerset | £365,000 | £1,523 | Buy £114,395 |
| Newcastle upon Tyne | £185,000 | £1,007 | Buy £105,707 |
| Redditch | £205,000 | £881 | Buy £104,460 |
| Greenwich | £495,000 | £1,932 | Buy £102,627 |
| Wolverhampton | £190,550 | £842 | Buy £100,826 |
| Bolton | £160,000 | £815 | Buy £99,019 |
| Kirklees | £160,000 | £712 | Buy £98,797 |
Where renting beats buying the most
| Area | Price | Rent / mo | Lead after 7 yrs |
|---|---|---|---|
| Kensington and Chelsea | £3,325,000 | £3,428 | Rent £1,281,869 |
| Westminster | £2,250,000 | £3,305 | Rent £926,762 |
| Camden | £1,733,750 | £2,621 | Rent £587,170 |
| Hammersmith and Fulham | £1,475,000 | £2,622 | Rent £313,714 |
| Hackney | £1,250,000 | £2,489 | Rent £209,076 |
| Islington | £1,488,028 | £2,697 | Rent £143,449 |
| Wandsworth | £1,122,500 | £2,463 | Rent £126,868 |
| Kingston upon Thames | £590,000 | £1,755 | Rent £124,851 |
| Haringey | £780,000 | £2,034 | Rent £124,758 |
| Waltham Forest | £687,100 | £1,723 | Rent £114,232 |
Rent vs buy by region
| Area | Price | Rent / mo | Lead after 7 yrs |
|---|---|---|---|
| North East | £128,000 | £697 | Buy £50,562 |
| North West | £165,000 | £882 | Buy £63,545 |
| Yorkshire and The Humber | £162,650 | £769 | Buy £43,262 |
| East Midlands | £187,500 | £826 | Buy £33,502 |
| West Midlands | £205,000 | £885 | Buy £45,510 |
| East | £305,000 | £1,145 | Buy £30,462 |
| London | £600,000 | £2,232 | Buy £32,967 |
| South East | £325,000 | £1,273 | Buy £30,697 |
| South West | £260,000 | £1,065 | Buy £45,841 |
| Wales | £165,000 | £779 | Buy £39,867 |
| Scotland | £196,000 | £911 | Buy £17,819 |
| Northern Ireland | £273,000 | £764 | Rent £24,274 |
Rent vs buy: frequently asked questions
Is it cheaper to rent or buy in the UK?
On the UK average for a 2-bed home, owning costs £1,606 a month against £1,458 to rent, including council tax on both. Over a 7 years stay, buying leaves you £73,007 better off after 7 years. Across 361 local authorities, buying comes out ahead in 282, renting in 53, and 26 are too close to call on the default settings.
How does this rent vs buy calculator work?
It runs a month-by-month model for 30 years. The buyer pays a deposit, stamp duty (or LBTT in Scotland and LTT in Wales), mortgage interest and capital, maintenance, insurance and service charges, then sells at the end of your stay after selling costs. The renter invests the deposit and stamp duty instead. Each month, whichever side is cheaper invests the difference at the return you choose. Net wealth is compared at the end of your stay.
Is a monthly mortgage payment the same as the cost of owning?
No. Part of each repayment mortgage payment is capital, which you keep as equity. The calculator splits the payment into interest (a cost) and capital (savings), and adds maintenance, insurance, service charge and ground rent, which renters do not pay.
How long do I need to stay for buying to beat renting?
Buying has large upfront and exit costs: stamp duty, legal fees and estate agent fees. These take years to recover through house price growth and mortgage repayments. Use the Stay control to find the break-even year for your area; the breakdown shows the year the lead changes hands.
Where do the rent and house price figures come from?
Rents are ONS Price Index of Private Rents (PIPR) averages by bedroom count, August 2026. Prices are ONS median price paid by property type for the year ending March 2026, with UK HPI used where medians are not published. Council tax uses each council’s 2026-27 Band D charge scaled to the typical band for the home size.
What investment return does the calculator assume?
By default the monthly difference goes into a Stocks & Shares ISA at 7.5% a year, compounded monthly. You can switch to a Cash ISA at 3.5%, an S&P 500 tracker at 8.5% (taxed above the £3,000 capital gains allowance), set your own rate, or turn investing off.
What is the price-to-rent ratio?
It is the house price divided by a year of rent. The UK figure for a 2-bed home is about 15.3. A high ratio means homes are expensive relative to rents, which tends to favour renting; a low ratio tends to favour buying.
Is this financial advice?
No. It is a transparent model built on official statistics, with every assumption visible and adjustable. Mortgage rates, rents and house prices change, and your own circumstances matter. Speak to a regulated adviser before making a decision.