Should I Buy or Rent?

What this means

This tool compares the total cost of buying (stamp duty, interest, minus equity growth) against the total cost of renting over your planned period to give a verdict on which option looks better financially.

Formula used

Net buying cost = stamp duty + legal fees + total mortgage interest − estimated equity growth. Compared against total rent over the same period.

Worked example

£350,000 property, £50,000 deposit, 4.5% rate, £1,400/month rent alternative, 7 years, 3% annual growth. Mortgage ~£1,550/month. Equity gained ~£57,000. Over 7 years buying comes out about £15,000 ahead — marginal but in buying's favour.

Common questions

What buying costs does the tool include?
Stamp duty (using current UK thresholds for primary residences), an estimated £2,000 for solicitor/conveyancing fees, and £1,500 for survey. It does not include ongoing maintenance, buildings insurance, or service charges.

How is stamp duty calculated?
Using the current UK SDLT rates for primary residential purchases: 0% up to £250,000, 5% on £250,001–£925,000, 10% on £925,001–£1.5m. First-time buyer relief is not separately modelled — the tool uses the standard rates.