UK Rent vs Buy Calculator

Compare the true cost of renting versus buying your home and find your break-even point.

Break-Even Point
? years
when buying becomes cheaper
Total Cost: Renting
£0.00
Total Cost: Buying
£0.00
Equity Built
£0.00
Property Value After Period
£0.00
Enter your details to compare renting vs buying.
Cumulative Cost: Rent vs Buy
Assumptions

Buying costs include: mortgage payments, deposit opportunity cost (estimated at 4% return on deposit), maintenance (1% of property value/year), and stamp duty. Property growth is applied annually. Rent increases are applied annually. This is a simplified model for comparison purposes.

Rent vs Buy · Monthly Cost Comparison UK 2026

Estimated monthly costs of renting vs buying at different property price levels. Mortgage assumed at 4.5%, 25-year term, 10% deposit.

Property Value Monthly Rent (avg) Mortgage Payment Difference Break-even (approx)
£200,000£1,050£1,001Buying £49 cheaper~3 years
£250,000£1,200£1,251Renting £51 cheaper~5 years
£300,000£1,400£1,501Renting £101 cheaper~6 years
£350,000£1,600£1,751Renting £151 cheaper~7 years
£400,000£1,850£2,001Renting £151 cheaper~6 years

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Rent vs Buy FAQs

Is it better to rent or buy in the UK 2026?
Buying is generally better long-term if you plan to stay 5 or more years and can afford the deposit and upfront costs. Renting offers flexibility with no maintenance responsibility and lower capital commitment. The right answer depends on your local property prices, rent levels and personal circumstances.
How long do you need to own a house to break even vs renting?
Most analyses suggest 3–7 years to break even, depending on property price, mortgage rate and local rent levels. Stamp duty, legal fees and mortgage costs all add to the upfront burden · the longer you stay, the more these costs are spread and buying tends to win financially.
What are the hidden costs of buying a house UK?
Beyond the deposit, buying costs include stamp duty (up to 12%), solicitor fees (£1,000–£3,000), survey (£400–£1,500), mortgage arrangement fee (£0–£2,000), buildings insurance, and ongoing maintenance · typically 1–2% of property value per year.
What are the advantages of renting over buying?
Renting offers flexibility to move without the cost of selling, no responsibility for maintenance or repairs, lower upfront costs, and no exposure to falling property prices. It can also free up capital for investing elsewhere, which may outperform property in some periods.
When does buying make more financial sense than renting?
Buying tends to make more sense when you plan to stay in a property for 5 or more years, when mortgage payments are close to or below local rent levels, when property values are expected to grow, and when you have a sufficient deposit to access competitive mortgage rates.

For informational purposes only · Not financial advice · Based on simplified assumptions