Rent vs Buy Calculator — UK
Compare renting vs buying in UK over your time horizon and see which comes out ahead. Free, no signup.
Should you rent or buy in the UK?
In the UK, buying carries a tax and transaction cost renters never see. On top of the calculator's down payment and mortgage figures, most buyers pay Stamp Duty Land Tax (SDLT): 0% up to £125,000, 2% up to £250,000, 5% up to £925,000, 10% up to £1.5 million and 12% above that for a standard residential purchase in England and Northern Ireland, according to the current bands published on gov.uk (accessed 24 September 2026). First-time buyers get a better deal — 0% up to £300,000 and 5% on the slice from £300,001 to £500,000, with no relief at all above £500,000. On top of SDLT, MoneyHelper puts typical solicitor/conveyancing fees at around £2,000 including VAT, plus a survey that ranges from roughly £380 for a basic condition report to £600+ for a full structural survey (MoneyHelper, accessed 24 September 2026). None of that is refunded if you move again quickly, which is why the calculator's time horizon matters so much for UK buyers.
What makes buying vs renting different in the UK
Council tax hits both tenants and owners. Unlike US property tax, which only owners pay, UK council tax is usually the resident's bill: when a landlord lets a whole property to one household, the tenants — not the landlord — are liable for council tax, per the standard liability hierarchy local authorities apply; the landlord only becomes liable for empty periods, if they live in the property too, or where it's a licensed House in Multiple Occupation (Wandsworth Council, accessed 24 September 2026). So renting in the UK doesn't avoid this cost the way it can avoid US property tax.
The Renters' Rights Act has now passed. The Renters' Rights Act received Royal Assent on 27 October 2025, ending "no-fault" section 21 evictions and converting assured shorthold tenancies to a periodic model that a tenant can leave with two months' notice; the government has set out an implementation roadmap but is commencing detailed provisions in stages rather than all on one day (gov.uk, accessed 24 September 2026). Check the current commencement date before relying on any specific protection.
Deposits are always protected. A landlord or letting agent must place a tenant's deposit into one of three government-approved schemes — the Deposit Protection Service, mydeposits or the Tenancy Deposit Scheme — within 30 days of receiving it, and must return it within 10 days of both parties agreeing the amount at the end of the tenancy (gov.uk, accessed 24 September 2026).
Stamp Duty is a one-off buying cost with no renting equivalent. It's paid on completion, is non-refundable, and (for first-time buyers) only applies in full above £300,000 — so a lower-priced first purchase can escape it almost entirely, changing the up-front cash gap between renting and buying shown in the calculator above.
Illustrative UK cost comparison
| Cost item | Buying | Renting |
|---|---|---|
| One-off tax | SDLT: 0–12% by band, or 0%/5% for first-time buyers (gov.uk) | None |
| Legal & survey | ~£2,000 conveyancing + £380–£600+ survey (MoneyHelper) | None |
| Recurring local tax | Council tax (owner-occupier pays) | Council tax (tenant usually pays) |
| Deposit protection | n/a | Must sit in a government-approved scheme (gov.uk) |
| Security of tenure | n/a | Strengthened by the Renters' Rights Act 2025 (gov.uk) |
Illustrative only — enter your own numbers in the calculator above. Sources for each row are listed under "Sources" below.
Frequently Asked Questions
Is it better to rent or buy in UK?
It depends on how long you'll stay, price growth, rent increases and your mortgage rate. Short stays usually favour renting; longer stays often favour buying. The calculator gives a clear answer for your numbers.
How much Stamp Duty will I pay in the UK?
For most residential buyers in England and Northern Ireland, SDLT is 0% up to £125,000, 2% up to £250,000, 5% up to £925,000, 10% up to £1.5 million and 12% above that. First-time buyers pay 0% up to £300,000 and 5% on the portion from £300,001 to £500,000, with no relief above £500,000 (gov.uk).
Who pays council tax, the tenant or the landlord?
Usually the tenant. When a landlord rents a whole property to one person, one family or joint tenants, the tenants are responsible for the council tax bill; the landlord becomes liable only for empty periods, if they live there too, or for licensed HMOs.
Is the Renters' Rights Act now law?
Yes. The Renters' Rights Act received Royal Assent on 27 October 2025. It will end section 21 "no-fault" evictions and move assured tenancies to a periodic model, though the government's implementation timetable means specific provisions commence in stages rather than all at once.
Do I need a survey when buying in the UK?
It's not compulsory but strongly recommended. Typical costs run from around £380 for a basic condition report up to £600 or more for a full structural survey, on top of roughly £2,000 in solicitor/conveyancing fees, according to MoneyHelper.
Sources
- gov.uk — Stamp Duty Land Tax overview (accessed 24 September 2026)
- gov.uk — SDLT residential rates and first-time buyer relief (accessed 24 September 2026)
- MoneyHelper — conveyancing and survey costs (accessed 24 September 2026)
- Wandsworth Council — council tax liability hierarchy (tenant vs landlord) (accessed 24 September 2026)
- gov.uk — guide to the Renters' Rights Act (Royal Assent 27 October 2025) (accessed 24 September 2026)
- gov.uk — tenancy deposit protection schemes (accessed 24 September 2026)