Rent vs Buy: Affordability Guide
Deciding whether to rent or buy is rarely just about headline prices. You need to compare two very different cost structures and think about how each option fits your goals. This guide explains the main affordability checks for renting and buying, and shows how the HouseBudget Calculator can give quick, side-by-side numbers.
Compare monthly cashflow first
Renting is typically a simpler monthly commitment: rent plus utilities and council tax. Buying involves mortgage payments, insurance, service charges or maintenance, and saving for repairs. Start by estimating:
- Rent scenario: monthly rent within 25–35% of take-home pay, plus bills.
- Buy scenario: mortgage payment from the calculator, plus allowances for fees, insurance and upkeep.
Upfront costs to keep in mind
- Renting: deposit (usually 4–5 weeks), first month’s rent and moving costs.
- Buying: deposit for the property, legal fees, surveys, stamp duty (if applicable) and moving costs.
The HouseBudget Calculator helps you explore how different deposit amounts change the mortgage you might afford.
Stability versus flexibility
Renting offers flexibility to move, but you are exposed to rent increases. Buying can give more stability and a chance to build equity, but ties you to a location and involves selling costs if you move early. Think about your plans over the next 3–5 years when weighing the options.
How to run a quick comparison
- Enter your income and debts into the rent side of the HouseBudget Calculator to see an affordable rent range.
- Switch to the mortgage side to estimate a comfortable monthly payment, borrowing amount and indicative property price based on your deposit.
- List the extra ownership costs (insurance, service charges, maintenance) and add them to the mortgage payment for a fair monthly comparison.
- Sense-check each scenario against your savings goals and how long you expect to stay put.
When renting may be better
- You plan to move within a couple of years.
- You want to prioritise building savings or paying off debts before taking on a mortgage.
- You work in an area where ownership costs would exceed 35% of take-home pay.
When buying may be better
- You have a stable income, a deposit saved and plan to stay for 3–5 years or more.
- You can keep total housing costs within your comfort zone even after applying a stress-rate check.
- You value long-term stability and the chance to build equity.
Use the calculator to keep both options realistic
Spending a few minutes with the HouseBudget Calculator can reveal the size of rent you can sustain today and the mortgage range that might work if you buy. Seeing both side by side makes it easier to choose the path that fits your budget, lifestyle and plans.