Rent vs Buy Calculator UK

We query the HM Land Registry Open Data API using a SPARQL endpoint, which contains every property sale registered in England and Wales. If there are recent sales within your postcode, we calculate the median. If not, we fall back to ONS House Price Index regional averages. The data badge in results tells you which source was used.

We first try Bank of England series IUMRNRNL — the live weighted-average interest rate on new loans secured on dwellings, published monthly. This is the closest public figure to what a typical UK borrower is actually paying on a new mortgage today. If that endpoint is unavailable we fall back to the BoE base rate (IUDBEDR) plus a 1.5% lender margin, and the results card clearly flags which source was used.

CPIH (consumer-price inflation) comes live from ONS and is used to inflate rental costs in projections. Private rental growth comes live from ONS series CZBH ("Actual rentals for housing") when available, or a benchmark otherwise. House price inflation stays as a 4.2% benchmark — there is no equivalent high-frequency clean HPI series we trust for projection purposes. Each figure in results shows whether it’s live or a benchmark.

The break-even year is the point at which buying a property has cost the same total amount as renting an equivalent property would have. Before that year, renting has been cheaper in pure cash terms. After it, buying has been more efficient overall — because equity and property value growth outweigh the higher upfront and monthly costs. If you plan to move before the break-even, renting is typically the better financial choice.

Yes. First-time buyers pay 0% SDLT on the first £425,000 and 5% on £425,000 to £625,000. Properties above £625,000 do not qualify for first-time buyer relief and are taxed at standard rates. Toggle 'Moving home' to see what a subsequent purchase would cost.

If you rent instead of buying, your deposit stays in your savings account. We show how much that money would grow at 4.5% per year (reflecting current cash ISA and savings account rates). This is relevant context: keeping your deposit invested is itself a form of return when renting, not just a lost expense.

The property price data and regional rents cover Scotland and Wales. However, Stamp Duty Land Tax (SDLT) is an England and Northern Ireland tax. Scotland uses LBTT (Land and Buildings Transaction Tax) and Wales uses LTT (Land Transaction Tax). Both have different rates and thresholds. We use SDLT as a close approximation — the assumptions card flags this clearly.

When you eventually sell, you'll pay estate agent fees (typically 1–2% of sale price) and conveyancing costs (around £1,500–£2,000). On a £400,000 property, that's roughly £5,500–£10,000 in selling costs — not included in this comparison. If you're planning to sell within 5 years, factor in these exit costs manually.