Buy or rent / London
Buy or rent in London?
A typical home in London costs around £535,000, and renting one costs around £2,150 a month. That's 20.7 years of rent to buy outright. A first-time buyer with a 15% deposit would need £99,150 in cash, including £16,750 of Stamp Duty. Over 10 years, with the calculator's starting assumptions, buying comes out £1,390 ahead.
These local figures are rough starting points, last updated 16 October 2026. Change them to match the homes you're actually looking at.
£
%
£80,250
£/month
After 10 years
Buying leaves you £1,390 better off
Buying gets ahead of renting in year 10, after selling costs. Renting here assumes you invest whatever buying would have cost you extra.
- Cash needed to buy
- £99,150Deposit £80,250, Stamp Duty £16,750, fees £2,150
- First month's costs
- £3,786 vs £2,330Buying (mortgage £2,930 plus running costs) vs renting
| Scenario | Better off after 10 yrs | Buying ahead from |
|---|---|---|
| Your assumptions | Buying by £1,390 | Year 10 |
| Mortgage rates 1.5 points higher | Renting by £84,830 | Not within the period |
| House prices don't grow | Renting by £202,515 | Not within the period |
| Rent rises 2.5 points faster | Buying by £46,721 | Year 6 |
| Investments return 2 points less | Buying by £52,783 | Year 5 |