The buying costs use Stamp Duty Land Tax, which applies in England and Northern Ireland. Scotland uses LBTT and Wales uses LTT, so the cost of buying there can differ: see UK rules by nation.
Your horizon and costs
Lower unrecovered cost over your chosen horizon
Renting
Difference over the horizon: £0
What this means
Over a short stay the upfront tax, fees and sale costs of buying have less time to be offset.
Rent vs Buy in the UK — what differs
The answer depends on how long you stay, local prices and rents, and how much flexibility matters, not just the monthly cost.
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 maths on real numbers
Two illustrative cases worked through with the calculator's own method, showing how the length of stay changes the answer.
Emma — first-time buyer, five-year horizon
| Property price and deposit | £220,000 with a £22,000 deposit (first-time buyer, so no Stamp Duty) |
| Mortgage | 4.5% over 25 years: £1,100.55 a month |
| Rent for a similar home | £950 a month (£11,400 a year), rising 3% a year |
| Other assumptions | House prices +2% a year, maintenance 1% of the price a year, £2,000 buying fees, 1.5% selling costs, 4% a year return on the deposit |
The maths:
- Interest paid over 5 years: £41,992 (the rest of the payments, about £24,000, repays capital and is not a cost)
- Maintenance £11,000 + buying fees £2,000 + selling costs £3,643 (1.5% of a sale price of about £242,900) + deposit return forgone £4,766
- Unrecovered cost of buying: £63,401
- Rent over 5 years: £60,524
- Renting is lower by about £2,900 over five years; on these assumptions buying first comes out lower around year 7
Result: At five years the two are close, and small changes to the assumptions (rent growth, the mortgage rate or the deposit return) can switch the answer. Her equity after selling would be about £65,300, which the calculator shows separately.
David — first-time buyer in London, likely to move within 3 years
| Property price and deposit | £450,000 with a £67,500 deposit (first-time buyer: £7,500 Stamp Duty, 5% of the £150,000 above £300,000) |
| Mortgage | 4.7% over 25 years: £2,169.71 a month |
| Rent for a similar home | £1,750 a month (£21,000 a year), rising 3% a year |
| Other assumptions | As for Emma, with £3,000 buying fees |
The maths:
- Interest paid over 3 years: £52,199
- Maintenance £13,500 + fees £3,000 + Stamp Duty £7,500 + selling costs £7,163 + deposit return forgone £8,428
- Unrecovered cost of buying over 3 years: £91,791
- Rent over 3 years: £64,909
- Renting is lower by about £26,900; on these assumptions buying first comes out lower around year 12
Result: Over a short stay the one-off costs (Stamp Duty, fees and selling costs, £17,663 here) have little time to be offset, so the length of stay matters as much as the monthly figures.
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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