Buy or rent?
Buying builds equity, but costs a lot up front and keeps costing in interest, maintenance and fees. Renting leaves that money free to invest. Put in your numbers to see which leaves you better off, and when buying gets ahead.
£
%
£45,000
£/month
After 10 years
Buying leaves you £53,738 better off
Buying gets ahead of renting in year 2, after selling costs. Renting here assumes you invest whatever buying would have cost you extra.
- Cash needed to buy
- £47,150Deposit £45,000, Stamp Duty £0, fees £2,150
- First month's costs
- £2,098 vs £1,485Buying (mortgage £1,643 plus running costs) vs renting
| Scenario | Better off after 10 yrs | Buying ahead from |
|---|---|---|
| Your assumptions | Buying by £53,738 | Year 2 |
| Mortgage rates 1.5 points higher | Buying by £5,390 | Year 5 |
| House prices don't grow | Renting by £60,601 | Not within the period |
| Rent rises 2.5 points faster | Buying by £81,148 | Year 2 |
| Investments return 2 points less | Buying by £76,398 | Year 2 |
How the comparison works
- The buyer pays the deposit, purchase tax, legal fees and survey up front. The renter pays a tenancy deposit of five weeks' rent and invests the rest of what the buyer spent.
- Each month, whoever has lower costs invests the difference at the return you set. Investments are treated as tax-free, as they would be in an ISA.
- The buyer's figure is after selling costs, as if they sold at the end. Moving costs and mortgage fees are not included.
- Purchase tax is for a main home only. Stamp Duty rates are those from 1 April 2025; LBTT and LTT use the current Scottish and Welsh bands.
- The starting mortgage rates and other assumptions were last updated 23 October 2026.