Rent vs Buy Calculator UK
Should you rent or buy? This compares the two over time, year by year. It grows the property value, the rent, and your savings, invests the difference on both sides, and shows when buying overtakes renting in real money.
Wealth if you buy
Wealth if you rent
Income to buy
How this works: each month both options spend the same amount (the higher of the buyer's mortgage plus maintenance, or the rent), and whoever spends less invests the difference at your savings return. The buyer's wealth is the home equity after a sale, net of selling costs, plus any side savings. The renter's wealth is the deposit and buying costs invested up front, plus their side savings. Stamp duty uses England and Northern Ireland residential rates, with first-time buyer relief applied when that box is ticked (no stamp duty up to 300,000 pounds). Today's money discounts future pounds by your inflation rate. Defaults reflect mid 2026 UK averages: price near 270,000 pounds, rent near 1,383 pounds, mortgage rate near 5.5%. This is a free estimate from Rentalize, not financial advice.
When buying wins, and when renting does
It is mostly about time
Buying carries large one-off costs: deposit, stamp duty, legal fees, and again on selling. Those take years of price growth and paid-down mortgage to recover. The longer you stay, the more buying tends to win. If you might move within a few years, renting often comes out ahead.
The assumptions move the answer
Higher house price growth favours buying. A higher savings return favours renting, because the renter invests the deposit. Higher mortgage rates and higher maintenance push toward renting. Drag the sliders to see your own crossover point on the chart.
How much you need to earn
Most UK lenders cap the mortgage at about 4.5 times income. The Income to buy figure is the rough salary you would need for this loan. Lenders also stress test affordability, so a larger deposit or a longer term lowers the income required.
Ways onto the ladder with a smaller deposit
95% mortgages
Many lenders offer 5% deposit mortgages, including the mortgage guarantee scheme. The rate is usually higher than at 10% or 15%, so the monthly cost is more. Set the deposit slider to 5% to see the effect.
Shared ownership
Buy a share of a home, commonly 25% to 75%, and pay rent on the rest. The deposit is based only on the share you buy, so the cash needed is far lower. You can buy more over time, known as staircasing.
Lifetime ISA and family help
A Lifetime ISA adds a 25% government bonus on up to 4,000 pounds a year toward a first home. A family deposit, gifted or via a guarantor mortgage, is the other common route to a usable deposit faster.
Rent vs buy FAQ
Is it better to rent or buy in the UK?
It depends mainly on how long you stay and what you assume for house price growth, mortgage rates, and investment returns. Over a long horizon, buying usually builds more wealth once the upfront costs are recovered, because you own an appreciating asset and stop paying rent. Over a short horizon, renting and investing the deposit often wins. Use the calculator above to find the crossover year for your numbers.
How does the calculator make the comparison fair?
Both options spend the same money each month. The buyer pays the mortgage and maintenance; the renter pays rent and invests the difference, plus the deposit and buying costs they did not have to spend. At the end, the buyer's wealth is their home equity after selling costs plus any side savings, and the renter's wealth is their invested pot. That is the fairest way to compare.
What is a realistic house price growth assumption?
UK house prices have grown around 3% to 4% a year on average over the long run, though recent growth has been lower, near 1% to 2%. Short periods can be flat or negative. Try a few values on the slider rather than relying on one figure.
Why does renting sometimes beat buying?
Because the renter invests the deposit and buying costs from day one, and avoids stamp duty, maintenance, and selling fees. If investment returns are high and house price growth is low, that invested pot can outgrow home equity, especially over shorter periods.
What does today's money mean?
Future pounds are worth less because of inflation. With the today's money option on, all figures are discounted back to current purchasing power using your inflation rate, so a pot in 25 years is shown in what it would buy now. Turn it off to see the raw future amounts.
Does this include buying and selling costs?
Yes. It adds stamp duty using the England and Northern Ireland residential bands, with first-time buyer relief when that box is ticked (no stamp duty up to 300,000 pounds, then 5% to 500,000), plus legal and survey fees on purchase and estate agent and legal fees on sale. It does not model mortgage product fees, ground rent, or service charges, which vary by property.
What salary do I need to buy a house?
Most UK lenders cap the mortgage at around 4.5 times income, so a rough guide is the loan amount divided by 4.5. The Income to buy figure above does exactly that for your inputs. A larger deposit reduces the loan and therefore the salary needed, and lenders also run an affordability stress test on your outgoings, so the real figure can be higher or lower.
Is this calculator financial advice?
No. It is a free estimate from Rentalize to help you think it through. It cannot predict markets. Speak to a mortgage adviser or financial adviser before a decision this large.
Renting it out instead?
If you are weighing up a buy to let, Rentalize handles rent collection, maintenance, compliance, and tax ready records for landlords and letting agents across the UK and Ireland.
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