Is It Cheaper to Rent or Buy in the UK?

The rent vs buy decision depends on more than just comparing your monthly rent to a mortgage payment. Buying involves upfront costs (stamp duty, solicitor fees, survey), ongoing maintenance (typically 1% of property value per year), and the opportunity cost of tying up your deposit. Renting keeps your capital free to invest elsewhere, but you build no equity and face annual rent increases.

Over short periods (under 5 years), renting is often cheaper once you account for buying costs. Over longer periods (10–20 years), buying typically wins as you build equity and your mortgage payment stays fixed while rents rise. The break-even point varies by location, house price growth and your mortgage rate.

To calculate your maximum mortgage borrowing, use our Mortgage Affordability Calculator. To see what stamp duty you'd pay, see our Stamp Duty Calculator.