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Rent vs Buy — UK

A rough guide to whether buying or renting leaves you better off over a set period.

Your situation

Where is the property?

First-time buyer

Buying

Property price (£)

Cash deposit (£)

LISA balance (£)

Enter the current balance including any bonus already added. Used toward the deposit only if eligible.

Mortgage rate (%)

Mortgage term (years)

Renting

Monthly rent (£)

Years you expect to stay

The single biggest factor. Short stays favour renting.

Assumptions (edit if you like)

Investment return (%/yr)

What the renter earns investing money not tied up in a deposit.

House price growth (%/yr)

Rent inflation (%/yr)

Maintenance (% of value/yr)

Buildings insurance (£/yr)

Legal, survey & mortgage fees (£)

Ground rent (£/yr)

Leasehold only. 0 for freehold.

Service charge (£/yr)

Leasehold flats / managed estates. 0 if none.

Estate agent fee on sale (%)

Legal fees on sale (£)

Tax bands used: SDLT (England & NI) and LBTT (Scotland) as in force from 1 April 2025; Welsh LTT main-residential rates as of 2026. Bands change at Budgets — verify current figures with HMRC, Revenue Scotland or the Welsh Revenue Authority before making an offer. This tool is a simplified estimate and not financial advice.

This rent vs buy calculator is free and private — it runs entirely in your browser, so none of your financial details are ever uploaded or sent to a server.

It models the "invest the difference" approach: whichever option costs less in a given month, the money saved is assumed to be invested, and both paths are compared as net worth after your chosen number of years. It accounts for UK stamp duty (SDLT, LBTT or LTT depending on nation), first-time buyer relief, LISA deposits, mortgage amortisation, house price growth, rent inflation, and the running costs of ownership like maintenance, insurance, ground rent and service charges. All figures are estimates, not financial advice.