This tool assumes that whoever pays less per month invests the difference. If your mortgage is £2,000 and rent is £1,500, a renter has £500 extra every month. If invested at 5-7% return, this 'Investable Surplus' can grow into a massive cash pot over 25 years, often rivalling the equity of a homeowner.

We have updated this tool with the latest April 2025 Stamp Duty rules. First-time buyers pay 0% tax on properties up to £300,000. However, if the property exceeds £500,000, you lose this relief entirely and must pay standard rates on the full amount.

This calculation is highly sensitive to the 'Property Appreciation' vs 'Investment Return' sliders. If property prices outpace the stock market, buying wins early. If the market booms while property stays flat, renting and investing the difference often results in a higher net worth.