Rent vs Buy Calculator UK
Should I rent or buy right now?
The honest comparison — including deposit opportunity cost and long-run wealth — rent vs buy calculator
Many people assume buying is always better. In reality it depends on interest rates, house price growth, rent inflation, and what you would do with your deposit. This UK Rent vs Buy calculator compares both paths — including mortgage costs, maintenance, transaction costs, and the opportunity cost of investing your deposit. It shows you the crossover point and net wealth comparison at your own numbers.
Property & Finances
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Net Wealth Over Time — Buying vs Renting & Investing
This is a planning illustration, not financial advice. Results are highly sensitive to house price growth and investment return assumptions. Transaction costs (buying and selling) are included. Maintenance and insurance are included for the buyer. Investment returns assume tax-free growth — for example, within a Stocks & Shares ISA. Taxable accounts may reduce the renting scenario's actual return by the applicable income or capital gains tax rate.
Even when buying wins financially, renting can still make sense if flexibility matters or if you expect to move within a few years. The right answer depends on your personal circumstances, not just the numbers.
Even when buying wins financially, renting can still make sense if flexibility matters or if you expect to move within a few years. The right answer depends on your personal circumstances, not just the numbers.
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Frequently asked questions
Is it better to rent or buy a house in the UK in 2026?
There is no universal answer. Buying builds equity and security but ties up capital, adds maintenance costs, and carries transaction costs of 3–5%. Renting preserves flexibility. The crossover year when buying becomes financially superior is typically 7–15 years in most UK cities.
What is the real cost of buying a home?
Beyond the purchase price: stamp duty, solicitor fees (~£1,500–3,000), surveyor fees (~£500–1,500), mortgage arrangement fees (~£500–2,000), buildings insurance, and maintenance (typically 1–2% of property value per year).
How much house price growth should I assume?
UK house prices grew at approximately 5–6% per year over the last 30 years on average, but with significant regional variation. Conservative planning assumes 2–3% real growth above inflation.