Renting vs Buying (mortgage)
Side-by-side comparison, when-to-use-each guide, and instant conversion. Reviewed for 2026.
Flexibility needed (job moves), can't raise 10% deposit, high price-to-rent ratio areas, short-term stay (<3 years).
Settled location (5+ years), can raise deposit, house price-to-rent ratio favours buying, building long-term equity.
| Aspect | Renting | Buying (mortgage) |
|---|---|---|
| Flexibility | High (leave at notice period) | Low (selling takes months) |
| Maintenance costs | Landlord responsible | Your responsibility |
| Wealth building | No equity | Equity accumulates |
| Rate risk | Rent rises | Mortgage rate changes |
| UK average deposit needed | — | ~£40,000+ (10% of average UK house) |
Enter your own figures — the crossover point and chart below update instantly. This is an estimate for comparison purposes, not financial advice.
The rent-vs-buy maths varies a lot by region — price-to-rent ratios in London are far higher than in the North East, which changes how long it takes buying to overtake renting.
| Region | Avg. house price | Avg. monthly rent | Price-to-rent signal |
|---|---|---|---|
| London | ~£530,000 | ~£2,100 | High — renting often cheaper short-term |
| South East | ~£385,000 | ~£1,350 | Moderate — close call |
| Midlands | ~£245,000 | ~£950 | Favours buying over 5+ years |
| North of England | ~£190,000 | ~£800 | Strongly favours buying |
| Scotland | ~£205,000 | ~£950 | Favours buying over 5+ years |
Figures are UK regional averages for 2026, rounded for readability — enter your own local price and rent above for an accurate result.
Frequently asked questions
When does buying beat renting financially?
The rule of thumb: if you'll stay for 5+ years, buy (transaction costs spread over more years). If you can't raise a 10% deposit, renting is forced. Renting is still cheaper in monthly terms across most UK regions in 2026, but the equity build-up in buying makes it better long-term once you factor in 10+ years of ownership.
How much deposit do I need to buy in the UK?
Minimum 5% (with the Mortgage Guarantee Scheme), though 10% usually gets you a meaningfully better rate. On the average UK house price (~£285,000 in 2026), a 10% deposit is £28,500. In London (average ~£530,000), a 10% deposit is £53,000.
Is it cheaper to rent or buy right now, with rates at 4-5%?
Month-to-month, renting is usually cheaper at current UK mortgage rates — a repayment mortgage on an average-priced home typically costs more per month than the equivalent rent once you include maintenance. Buying only pulls ahead once you count the equity you're building, which is why the time horizon in the calculator above matters more than the monthly number alone.
What is the "crossover point" in a rent vs buy calculation?
It's the year at which the total financial position of buying (equity built, minus costs) overtakes the total financial position of renting (rent paid, plus the growth on your invested deposit). Before the crossover, renting has usually left you better off overall; after it, buying has. Our calculator above plots this on the chart so you can see your own crossover year.
Does the calculator include stamp duty and other buying costs?
Not automatically — the estimate excludes stamp duty, solicitor/conveyancing fees, survey costs, and letting agency fees on the renting side, since these vary by price band, region and individual circumstances. Budget roughly 2-5% of the purchase price for one-off buying costs on top of the deposit shown above.
Why does the calculator assume my deposit is "invested" if I keep renting?
Because otherwise the comparison isn't fair. If you don't spend your deposit on a house, that money doesn't just sit still — in a realistic comparison it's invested and grows over time. This "opportunity cost of capital" adjustment is the same approach used by well-known models like the New York Times rent-vs-buy calculator, and without it, buying looks artificially better than it really is.
How does location affect whether renting or buying wins?
Price-to-rent ratio is the key driver. In high-price areas like London, house prices are very high relative to achievable rents, so renting can stay cheaper for many years. In lower-priced regions such as the North of England or Scotland, house prices are much closer to rent levels, so buying tends to overtake renting sooner. See the regional table above for a rough comparison.
Should I use a fixed or variable mortgage rate in the calculator?
Enter whichever rate you'd actually be offered — for a fixed deal, use the fixed rate for its term and then estimate a likely rate after that; for a tracker or variable deal, use the current rate and treat the result as more uncertain, since it can move with the Bank of England base rate. If you're weighing up fixed versus variable specifically, our fixed vs tracker mortgage comparison goes into that decision in more depth.
Is buying always better if I can afford the deposit?
No. Even with a deposit ready, buying still carries selling costs and months of illiquidity if your circumstances change, ongoing maintenance you're responsible for, and exposure to local house-price falls. If you might need to move within 3-5 years, renting is usually the financially safer choice regardless of deposit affordability.