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UK Buy vs Rent Calculator

Compare the long-term financial outcome of buying a home versus renting in the UK. See your projected net worth, breakeven year, and total costs under either path.

Purchase & Loan

£
£100,000£2,000,000
£
£32,500£650,000
5%100%
%
1%10%
yrs
5 yrs40 yrs

Rental

£
£500£10,000

Your Estimate

Renting Net Worth at Year 10

£847

Buying Net Worth

-£154,713

Renting Net Worth

£847

Difference

Renting saves £155,560

Renting is the better financial choice throughout this period. Buying never catches up within 10 years.

BuyingRenting

Net Worth Over Time

Buying
Renting
How Much Mortgage Can I Afford in the UK?
Home Affordability🇬🇧 UK

How Much Mortgage Can I Afford in the UK?

Complete guide covering income multiples, the Bank of England stress test, stamp duty costs, and step-by-step budget examples for UK buyers.

Read article

UK Buy vs Rent — Frequently Asked Questions

Is buying always better than renting in the UK?
No, buying is not always better than renting in the UK. The right choice depends on how long you plan to stay, local property prices, mortgage rates, and your investment alternatives. In expensive UK cities like London, renting can often be the better financial decision in the short to medium term. Our calculator computes your personal breakeven year.
What is stamp duty and how does it affect the buy vs rent decision?
Stamp duty land tax (SDLT) is a significant upfront cost when buying a home in England and Northern Ireland, ranging from 0% to 12% of the purchase price. As of April 2025, the nil-rate band is £250,000 for standard buyers, with additional surcharges for second homes. This cost is unrecoverable and must be factored into your breakeven analysis.
What are the hidden costs of buying a home in the UK?
Beyond the purchase price, UK homebuyers face stamp duty, conveyancing fees (£500 to £2,000), survey costs (£250 to £1,500), mortgage arrangement fees (£500 to £2,000), valuation fees, and moving costs. Ongoing costs include council tax, buildings insurance, maintenance (around 1% of property value annually), and ground rent or service charges for leasehold properties.
What is the breakeven year in a UK buy vs rent analysis?
The breakeven year is when cumulative net worth from buying exceeds renting. In the UK, with high stamp duty costs, breakeven often takes 5 to 7 years depending on your local market. Before the breakeven year, renting builds more wealth. After it, buying becomes the better financial choice.
How does the leasehold vs freehold distinction affect buying?
Leasehold properties (common for flats) come with ground rent, service charges, and a limited lease term, which affects long-term value. Freehold properties have no such costs but come with full maintenance responsibility. Leasehold terms under 80 years can be difficult to mortgage. These factors affect both the affordability and long-term value of buying.