How much does stamp duty cost in the UK?

Standard SDLT rates: 0% up to £250,000, 5% on £250,001–£925,000, 10% on £925,001–£1.5M, 12% above. First-time buyers pay no SDLT up to £425,000 and 5% on £425,001–£625,000. On a £350,000 property, a home mover pays £5,000 SDLT; a first-time buyer pays nothing.

What is the break-even year for buying vs renting in the UK?

The break-even year is when equity built (through mortgage repayment and property appreciation) exceeds cumulative extra buying costs including stamp duty. In most UK markets outside London, buyers break even within 5–10 years. In London at current rates, the break-even can exceed 15 years due to high prices relative to rents.

What is shared ownership and is it a good alternative?

Shared ownership allows you to buy 25–75% of a property and pay subsidised rent on the remainder. You need only a 5–10% deposit on your share rather than the full price. You can staircase up to 100% ownership over time. Monthly costs fall between full rent and full ownership, making it a practical stepping stone for those who cannot afford to buy outright.

UK Rent vs Buy Calculator

Q: Who pays council tax — renters or homeowners?

The occupier pays council tax — both renters and homeowners pay it. In some rental arrangements the landlord includes council tax in the rent, but typically it is the tenant's direct responsibility. This calculator includes council tax in both the rent and buy monthly totals for a fair comparison.

Compare the true cost of renting versus buying in the UK. Includes stamp duty (SDLT), council tax, service charges, and equity growth. See your 5-year comparison and break-even year. All figures in GBP.

Monthly Rent

Property Price

Deposit

£10%

Mortgage Rate

Buying vs Renting — Monthly Cost Difference

+£588/mo

Buying costs more per month — you are building equity instead

Monthly Mortgage

£1,796

Total Monthly Buy Cost

£2,538

Total Monthly Rent Cost

£1,950

Stamp Duty (SDLT)

£0

LTV

90.0%

Break-Even Year

Year 1

Advanced

5-Year Comparison

Year-by-year total rent paid vs buy costs, equity built, and stamp duty recovery

Annual Rent Increase

Annual Appreciation

Year	Total Rent Paid	Total Buy Cost (inc. upfront)	Equity Built	Buying Advantage
Year 1	£21,600	£65,450	£53,983	Buyer ahead
Year 2	£43,848	£95,901	£73,722	Buyer ahead
Year 3	£66,763	£126,351	£94,248	Buyer ahead
Year 4	£90,366	£156,802	£115,592	Buyer ahead
Year 5	£114,677	£187,252	£137,788	Buyer ahead

At 3.5%/yr growth, the £350,000 property gains £12,250 in year one alone — helping offset higher monthly costs.

Pro

Wealth Analysis

Net worth at 10 and 20 years, shared ownership alternative, and rate sensitivity

Investment Return (renter)

Annual Appreciation

At Year 10

Buyer net worth:

£262,828

Property equity after mortgage

Renter net worth:

£171,137

Deposit + monthly savings invested

At Year 20

Buyer net worth:

£600,682

Property equity after mortgage

Renter net worth:

£443,288

Deposit + monthly savings invested

UK house prices have grown an average of 3–5% per year over the long run. In rising markets, buying typically builds more wealth; in flat markets, investing the deposit can outperform.

How to Use This UK Rent vs Buy Calculator

Enter your monthly rent (or the rent you would pay for a comparable property), the property price, your deposit, and your expected mortgage rate. The calculator automatically computes the Stamp Duty Land Tax (SDLT), shows total monthly costs for both options, and estimates when buying pays off.

What Costs Does the Calculator Include?

Buying: mortgage repayment, council tax, buildings insurance, maintenance (1% of value/yr), service charge or ground rent
Renting: monthly rent plus council tax (renters still pay council tax in England)
Upfront buying costs: SDLT, deposit (shown in 5-year comparison)

UK Stamp Duty Land Tax (SDLT) — 2024 Rates

Standard rates (England and Northern Ireland):
£0–£250,000: 0%
£250,001–£925,000: 5%
£925,001–£1.5M: 10%
Over £1.5M: 12%

First-Time Buyer Relief:
£0–£425,000: 0%
£425,001–£625,000: 5%
Above £625,000: Standard rates apply (no relief)

Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) — different thresholds apply. The SDLT nil rate band reverts to £125,000 in April 2025 when the temporary increase expires.

Rent vs Buy: The Real Comparison

The rent vs buy decision is rarely about monthly cost alone. Buyers build equity through mortgage repayment and property appreciation; renters retain flexibility and can invest their deposit and monthly savings surplus. The key variables are:

House price growth: UK long-run average 3–5% annually, but varies hugely by region and decade
Rent inflation: In recent years UK rents have risen 8–10% annually in major cities
Mortgage rate: At 2% rates, buying was far cheaper; at 5–6%, the comparison is much tighter
How long you stay: SDLT and moving costs are amortised over time — short stays favour renting

Example: London vs Manchester Comparison

Same Income, Different Cities

	London	Manchester
Property price	£550,000	£250,000
Monthly rent (similar)	£2,400	£1,100
Monthly mortgage (4.75%, 25yr, 10% dep.)	£2,936	£1,334
Monthly cost difference	+£736/mo buying	+£234/mo buying
SDLT (home mover)	£22,500	£0
Break-even (approx.)	12–15 years	4–6 years

In London, buying requires a much longer horizon to justify the premium. In Manchester and most Northern cities, buying makes financial sense sooner due to lower prices relative to rents.

Frequently Asked Questions

In most UK cities at 2024 mortgage rates of 4.5–5.5%, the monthly cost of buying is higher than renting a comparable property. However, buyers build equity and benefit from house price growth. Renting is typically cheaper month-to-month but offers no wealth building. The answer depends heavily on location, deposit size, mortgage rate, and how long you plan to stay.

Stamp duty is a significant upfront cost that delays the financial break-even of buying. On a £350,000 property for a home mover, SDLT is £5,000. First-time buyers pay no SDLT up to £425,000. This cost must be recovered through equity growth before buying truly pays off financially, typically adding 1–3 years to the break-even timeline.

Council tax is paid by the occupier — the person living in the property. Renters and homeowners both pay council tax directly to the local authority. In some rental situations the landlord includes council tax in the rent, but typically it is the tenant's responsibility. This is why the calculator includes council tax in both the rent and buy cost totals.

Shared ownership allows you to buy 25–75% of a property and pay subsidised rent on the remainder. You need a much smaller deposit (typically 5–10% of your share only) and can staircase up to 100% over time. The total monthly cost is usually between full rent and full ownership. It is a good option if you cannot afford to buy outright but want to start building equity.

The break-even year is when the equity you have built through mortgage repayment and property appreciation exceeds the cumulative extra costs of buying (stamp duty, higher monthly payments). This calculator computes this year-by-year. In most UK markets outside London, buyers break even within 5–10 years. In London at current rates, the break-even can exceed 15 years.