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First-pass decision tool

Rent vs Buy Calculator

Use this when the question is not just “can I buy?” but “what happens if I buy and then move in a few years?” It compares renting with buying over a chosen horizon using mortgage interest, SDLT, maintenance, sale costs and the opportunity cost of tying up your deposit.

Scope: this page uses England and Northern Ireland SDLT for the buying side. The nation note above this calculator explains what to use instead for Scotland or Wales.

Your horizon and costs

Lower unrecovered cost over your chosen horizon
Renting Difference over the horizon: £0
Renting cost over the horizon£0
Buying unrecovered cost over the horizon£0
Estimated home equity after sale£0
Mortgage payment per month£0
SDLT used in the estimate£0
Opportunity cost on the deposit£0
Estimated break-even yearNo clear break-even yet

What this means

Short holding periods punish buyers because the upfront tax, fees and sale costs have less time to be offset by equity build-up and house-price growth.

Stamp duty details

Rent vs Buy in the UK — 10-year cost framework

The right answer depends on geography, time horizon, and personal flexibility — not just monthly cost. Here's the framework for a typical UK city scenario.

Dimension RentingBuying (mortgage)
Upfront cash needed1-2 months deposit + 1 month rent (~£2,000-£4,000)10-25% deposit + 1-2% fees (~£30,000-£60,000 for a £250k home)
Monthly outgoingsRent only (utilities + council tax separate)Mortgage + buildings insurance + maintenance + utilities + council tax
Maintenance responsibilityLandlordYou (~1% of property value/year typical)
Flexibility to moveHigh — 2 months notice typicalLow — selling typically takes 3-6 months + costs
Equity build£0 — no asset accumulation£20-30k equity over 5 years on typical mortgage
Exposure to house-price movesNoneDirect — 1:1 with property value changes
Stamp Duty (FTB on £250k home)None£0 (FTB relief below £425k)
Council TaxYou pay (most rentals)You pay
10-year financial break-evenTypically £40k-£60k cheaper in HCOLTypically £20k-£50k cheaper in LCOL
Best forCareer uncertainty, expecting to move within 5 years, prefer flexibilitySettled in location, 7+ year horizon, want stability and equity

Figures use 2026/27 UK tax-year rates and thresholds. Verify your specific situation against HMRC, FCA or MoneyHelper guidance before deciding.

Worked examples — see the math on real numbers

The break-even maths between renting and buying in different UK regions — and why the 5-year rule of thumb persists.

Emma — first-time buyer in Manchester

Property price£220,000
Deposit (10%)£22,000
Mortgage rate4.5% over 25 years
Monthly mortgage payment£1,100
Buying costs (legal, survey, SDLT)£3,500 (FTB relief on SDLT)
Equivalent rent for same property£950/month

The math:

  1. 5-year cost of buying: £22,000 deposit + £3,500 fees + (£1,100 × 60 months) = £91,500
  2. After 5 years: principal paid ~£20,000, interest ~£46,000, fees £3,500
  3. Property value at 3% annual growth: ~£255,000
  4. Equity at year 5: £255,000 − remaining mortgage ~£178,000 = £77,000
  5. 5-year cost of renting: £950 × 60 = £57,000 (no equity at end)
  6. Net position buying: −£91,500 paid + £77,000 equity − £22,000 (original cash that's now equity but illiquid) = roughly break-even by year 5

Result: Emma breaks even around year 5 at Manchester prices. The "buying always wins" myth is partly true at modest UK regional prices but the break-even stretches to 7-10 years in London and HCOL areas where house prices are high relative to local rents.

David — London professional considering staying flexible

Property price£450,000 1-bed flat
Deposit (15% for FTB)£67,500
Mortgage rate4.7%
Monthly mortgage~£2,170
Equivalent rent£1,750/month
Job certaintyLikely to move in 2-3 years

The math:

  1. 5-year cost buying: £67,500 deposit + ~£6,000 fees + (£2,170 × 60) = £203,700
  2. Equity at year 5 (assuming 2% London growth): £495,000 − ~£365,000 mortgage = £130,000
  3. Effective 5-year cost: £203,700 − £130,000 + £67,500 forgone interest on deposit ≈ £141,200
  4. Renting alternative: £1,750 × 60 = £105,000 + monthly £420 saved (vs buying) × 60 = additional £25,200 in savings
  5. Renter's investments at 5% return on £67,500 + monthly £420 savings: ~£115,000

Result: David is genuinely close to break-even at London prices and 5-year horizon. If he'll move within 3 years, renting + investing the deposit usually wins. If he'll stay 7+ years, buying tends to win. The decision is more about geographic flexibility than money.

Figures use 2026/27 UK tax-year rates and thresholds. Always verify against your specific payslip or tax statement before acting.

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How to read the result

This page compares unrecovered cost rather than just total cash out. On the buying side it treats mortgage interest, SDLT, fees, maintenance, sale costs and the opportunity cost of the deposit as the main “gone for good” costs, while showing the remaining home equity separately.

Sources and assumptions

GOV.UK Stamp Duty Land Tax rates GOV.UK mortgage calculator overview GOV.UK Lifetime ISA

This calculator uses England and Northern Ireland SDLT as a first pass. Mortgage rates, rent growth, house-price growth and investment returns are all user inputs, not forecasts.