It's the question almost every renter asks at some point: am I better off buying? With rents still rising faster than house prices, mortgage rates stuck above 5% and the Autumn Budget just around the corner, the answer in 2026 and into 2027 depends more than ever on where you live.
In this guide, we use the latest official figures to compare buying and renting in four parts of the UK: London, the North East, Wales and Scotland. The answers are quite different.
Where rents and prices stand right now
According to the ONS, the average UK private rent reached £1,406 a month in September 2026, up 3.8% on a year earlier. House prices, meanwhile, have almost stood still: the average UK home was worth £273,000 in August, up just 0.9% over the year, according to the UK House Price Index.
Mortgages are still expensive. The Bank of England has held the base rate at 3.75% all year, and the average two-year fixed rate at 75% loan-to-value was around 5.4% in late September. We explained why in The £1,000 Question.
Here's how the four areas in this guide compare:
| Area | Average home price | Average monthly rent |
|---|---|---|
| London | Average home price£554,430−2.2% in a year | Average monthly rent£2,338+3.5% in a year |
| North East | Average home price£165,640+3.2% in a year | Average monthly rent£790change n/a |
| Wales | Average home price£216,363+3.1% in a year | Average monthly rent£848+4.1% in a year |
| Scotland | Average home price£198,397+2.9% in a year | Average monthly rent£1,011+0.7% in a year |
Prices: UK House Price Index, August 2026. Rents: ONS, September 2026. The ONS doesn't publish a written figure for rent growth in the North East.
The key thing most comparisons miss
Comparing your rent with a monthly mortgage payment isn't a fair fight. Part of every mortgage payment pays off the loan, so it's money you keep as equity in your home. The fairer comparison is between your rent and the money an owner never gets back: mortgage interest, maintenance and insurance. We call that the "true cost" of owning in the examples below.
Example 1: London, where renting still wins on cost
Priya and Sam rent in London and pay the average rent of £2,338 a month. Buying the average London home, at £554,430, would look like this:
- Upfront: about £77,000. That's a £55,443 deposit, around £3,750 in fees and £17,722 in stamp duty. Because the price is over £500,000, they wouldn't get first-time buyer relief.
- Monthly mortgage: about £3,034, or £3,215 if rates went to 6%.
- True monthly cost of owning: about £2,714 in interest, maintenance and insurance, around £375 more than their rent.
London prices have also fallen 2.2% over the last year. On the average home, that's around £12,000 of value lost. For many Londoners, renting is still the cheaper option on paper right now.
That doesn't mean buying in London is off the table. Prices for London flats have fallen 5% in a year, so buyers who look below the average, or in outer boroughs, may find the sums look very different. And falling prices give buyers room to negotiate, as we explain in our guide to negotiating in a buyer's market.
Example 2: The North East, where buying is close to break-even
Jess rents in the North East, in somewhere like Newcastle, Sunderland or Durham, and pays the regional average of £790 a month. Buying the average North East home, at £165,640:
- Upfront: about £20,300. That's a £16,564 deposit and around £3,750 in fees. As a first-time buyer in England, she'd pay no stamp duty.
- Monthly mortgage: about £907, or £960 at 6%.
- True monthly cost of owning: about £829, only around £40 more than her rent.
In her first year, Jess would also pay off around £2,900 of her mortgage. And if prices rose in line with the last year's 3.2%, her home would gain around £5,300 in value. That's the strongest price growth of any English region, and it's why the North East has been one of the few areas where sales are up on last year.
Example 3: Wales, where it depends how long you stay
Rhys and Megan rent in Wales and pay the average of £848 a month. Buying the average Welsh home, at £216,363:
- Upfront: about £25,400. That's a £21,636 deposit and around £3,750 in fees. Because the price is under £225,000, they'd pay no Land Transaction Tax.
- Monthly mortgage: about £1,184, or £1,255 at 6%.
- True monthly cost of owning: about £1,075, around £225 more than their rent.
On monthly costs alone, renting looks cheaper. But Welsh rents rose 4.1% last year, and Welsh house prices rose 3.1%. That growth would add around £6,700 to the value of the average home, on top of the £3,800 or so they'd pay off their mortgage in year one. If they plan to stay put for five years or more, buying starts to look much stronger. In Cardiff, our guide to the city's most affordable areas shows where your money goes furthest.
Example 4: Scotland, where buying already costs less
Callum rents in Scotland and pays the average of £1,011 a month. Buying the average Scottish home, at £198,397:
- Upfront: about £24,000. That's a £19,840 deposit, around £3,750 in fees and about £468 in Land and Buildings Transaction Tax with first-time buyer relief.
- Monthly mortgage: about £1,086, or £1,150 at 6%.
- True monthly cost of owning: about £987, slightly less than his rent.
Scotland is the only one of our four examples where the true cost of owning is already lower than renting, and Callum would also be building equity. One thing in renters' favour: Scottish rents rose just 0.7% last year, the slowest of the four areas, so the pressure to buy isn't growing as fast as elsewhere.
The costs people forget
If you buy:
- Maintenance. Setting aside 1% of your home's value each year is a common rule of thumb. For older homes, 2 to 3% is often closer to reality. Our guide to the true yearly cost of owning a home breaks it all down.
- The upfront bill. Deposit aside, fees, surveys and moving costs usually add £5,000 to £10,000, and most of it must be paid in cash. Here's what it actually costs to buy a house.
- Rate risk. When your fixed deal ends, your payments could go up. Test your budget at 5%, 5.5% and 6% before you commit.
If you rent:
- Rising rents. UK rents rose 3.8% last year, much faster than house prices.
- Nothing to show for it. Your rent doesn't build equity, so it's worth saving or investing the difference if renting is cheaper for you.
- Less control. You can't always decorate, make changes or keep pets. That said, renters in England now have more security under the Renters' Rights Act: Section 21 "no-fault" evictions have been abolished, rent can only go up once a year and landlords can ask for no more than one month's rent upfront. Our guide to the Renters' Rights Act explains the changes.
When buying makes more sense
- You plan to stay in the same area for at least five years.
- Local prices are affordable compared with rents, as in the North East and Scotland.
- You have a deposit and an emergency fund saved, and your job feels secure.
- You want the freedom to make a home your own.
When renting makes more sense
- You might move for work or family in the next few years.
- Local prices are very high compared with rents, as in much of London.
- You're still building your deposit, or you'd have nothing left in savings after buying.
- You'd rather not take on maintenance and repair bills.
Help for first-time buyers
If you're buying your first home in England or Northern Ireland, you pay no stamp duty on homes up to £300,000. The government has also announced Your First Home, a scheme that could let first-time buyers in England buy with a 2.5% deposit. Funding and timings are expected in the Autumn Budget on 28 October, so it's worth waiting for the details before you make any big decisions.
If you decide to buy, our step-by-step guide for first-time buyers and our guide to how to search for a property will help you get started.
Make the decision with the full picture
Whether you buy or rent, the right choice comes down to the home, the area and how long you'll stay. Planna can help with each one:
- Choose the area: compare neighbourhoods with the Area Guide.
- Find a home: browse properties on Planna.
- Check the facts: get an instant Home Report on any property, including its energy rating and flood risk.
- Know the condition: HomeScore rates a home's safety, condition and energy, so you can budget for maintenance before you buy.
From your first viewing to looking after the home you buy, see how Planna can help at every stage of your home journey.
This article is for general information and does not constitute financial or mortgage advice. Figures are based on official averages and the assumptions above, and are accurate as of October 2026. Always speak to a qualified mortgage adviser about your own circumstances.
