United Kingdom · Interactive Calculator
UK Rent vs Buy Calculator
Compare the financial cost of renting versus buying a home in the UK market.
Recommendation
Calculating...
Review the comparison below to see whether renting or buying builds more wealth over time.
Renting & Investing
Renting and investing the surplus cash flow.
- Net Wealth (Year 10)
- $0
- Monthly Cost (Year 1)
- $0
- Total Spent (Rent)
- $0
Buying Home
Purchasing a home and building equity.
- Net Wealth (Year 10)
- $0
- Monthly Cost (Year 1)
- $0
- Total Spent (Interest+Fees)
- $0
Comparison
- Wealth Difference $0
- Break-even Year –
- Upfront Cash Required (Buy) $0
Analysis
Update the inputs to generate an analysis.
Deciding whether to rent or buy a home in the UK is a major financial decision. This calculator helps you compare the total wealth accumulated over time between two scenarios:
- Buying a Home: You pay a deposit, purchase costs (Stamp Duty), and monthly mortgage payments. You build equity in the property as its value grows and you pay down the debt.
- Renting & Investing: You rent a similar property and invest the "surplus" cash flow (the money you save by not paying purchase costs and potential monthly savings) into a diversified portfolio (e.g., stocks/ISAs).
Key Considerations for UK Buyers
- Stamp Duty Land Tax (SDLT): Upfront tax can be significant. First-time buyers often get relief.
- Maintenance: Homeowners must pay for all repairs (boiler, roof, etc.), typically budgeted at 1% of value annually.
- Investment Returns: Historically, the stock market (FTSE/Global) has returned 5-7% annually after inflation, while UK property has grown at varied rates.
Use this tool to model your specific scenario.