Rent vs Buy
Which is Better for You?

The rent versus buy debate isn't just about money - it's about your lifestyle, career plans, and financial goals. While buying builds equity and offers stability, renting provides flexibility and lower upfront costs. Our calculator helps you see the financial reality of both options over your planned timeframe.

When Renting Makes Sense

Renting is often the smart choice if you value flexibility, aren't sure where you'll be in 3-5 years, or don't have a deposit saved yet. You avoid maintenance costs, aren't tied to one location, and don't risk property price drops. If you're in an expensive area where buying is far out of reach, renting and investing the difference might build more wealth than stretching for a mortgage.

When Buying Makes Sense

Buying typically pays off if you're staying put for 5+ years. You build equity with every payment, benefit from property appreciation, and eventually own your home outright. UK property has historically grown 3-4% annually on average, and while past performance doesn't guarantee future results, homeownership remains one of the main ways British families build wealth.

Hidden Costs of Homeownership

Remember that buying involves more than just your mortgage payment. Budget for stamp duty (which can be tens of thousands), legal fees (£1,000-£1,500), survey costs (£300-£1,000), and ongoing maintenance (typically 1% of property value annually). Boiler replacements, roof repairs, and decorating all add up. Factor these in when comparing to renting.

The Break-Even Point

The break-even point is when the equity you've built from buying exceeds what you would have spent renting. This typically takes 3-7 years depending on property prices, rent levels, and appreciation rates in your area. If you're planning to move before break-even, renting might be financially smarter once you factor in transaction costs.