Should I Rent or Buy? — United Kingdom

The real math most calculators skip. See your total wealth under both paths.

How UK Costs Affect the Rent vs Buy Decision

UK buyers face Stamp Duty Land Tax (SDLT) as a significant upfront cost. On a £350,000 property, SDLT is £7,500 — or £2,500 if you’re a first-time buyer. This calculator uses the correct progressive band calculation, not a flat rate estimate.

Unlike the US, the UK offers no mortgage interest deduction for your primary residence. Your full mortgage payment is an after-tax cost. However, Principal Private Residence Relief means you pay no capital gains tax when you sell your home — a full exemption with no cap.

Most UK mortgages are fixed for 2-5 years, then revert to the lender’s variable rate. Factor in potential rate changes when choosing your time horizon.