Rent vs Buy London: 10 Queries to Know If Buying Is Actually Possible

2026-04-17 6 min read

Your situation: You've been paying rent for years and wonder whether buying is realistic — or something that keeps moving further away. This guide uses real Land Registry data to give you a concrete answer, and an interactive calculator to show whether your numbers work.

Step 1 — Find Out What Entry Level Costs in Your Target Borough

Start with the lower quartile price — not the median. The lower quartile is the price at which 25% of flats sold for less. It's the realistic floor for a first buyer, not an estate agent's showcase number.

Ask the bot for your target borough first. Then run the same query for any others you're considering.

Query 1 of 10

"What is the lower quartile flat price in Tower Hamlets?"

Step 2 — Run the Rent vs Buy Calculator

Now put your own numbers in. This tells you how long it takes to save your deposit, what your mortgage will cost, and whether buying is cheaper than renting month-to-month.

→ Open the full Rent vs Buy Calculator (free, no login)

Step 3 — Has the Market Been Moving Against You?

Query 2 of 10

"How has the median flat price in Tower Hamlets changed over the last 5 years?"

Step 4 — How Active Is the Market?

Query 4 of 10

"How many flats sold in Tower Hamlets in 2025?"

Step 5 — How Much of the Market Is Within Budget?

Query 5 of 10

"What percentage of flats in Tower Hamlets sold for under £500,000 in 2025?"

Step 6 — Avoid the New Build Trap

Query 6 of 10

"What is the new build vs resale flat price in Tower Hamlets?"

Step 7 — Drill Into Postcodes

Query 7 of 10

"Which postcode in Tower Hamlets had the lowest median flat price in 2025?"

Query 8 of 10

"How has the flat price in E3 changed since 2020?"

Is the cheapest postcode cheap for a reason, or just less discovered? A stable or slightly rising trend is a green flag. A sharp decline warrants investigation.

Step 8 — Check the Cheaper Alternative

Query 9 of 10

"What is the lower quartile flat price in Lewisham?"

Step 9 — Get the Latest Signal

Query 10 of 10

"What is the early 2026 flat price in Tower Hamlets?"

Demo: How 10 Queries Leads to a Decision

Demo walkthrough — not financial advice

Paying £2,100/month rent · Saving £600/month · Income: £65,000 · Target: Tower Hamlets resale flat

After 10 queries, here's what the data shows:

→ Tower Hamlets lower quartile: £365,000. At 10% deposit (£36,500), saving £600/month at 4.5% ISA rate takes about 57 months (4 yr 9 mo) — during which roughly £120,000 in rent is paid.

→ Loan: £328,500. Monthly mortgage at 4.5% over 25 years: ~£1,820/mo — £280/mo less than current rent of £2,100. Buying is cheaper month-to-month once you get there.

→ Income check: £65,000 × 4.5 = £292,500 max mortgage. Loan needed: £328,500 — a shortfall of ~£36,000. Options: add a co-buyer, target Lewisham at £286,875 instead (loan ≈ £258k, well within range), or save for 15% deposit to bring the loan down.

→ Tower Hamlets flat prices fell 15.6% from their 2021 peak (£539,000 → £455,000 median). The lower quartile also fell, from £407,545 in 2021 to £365,000 in 2025 — the deposit target got easier while this buyer was saving.

→ E3 (Bow/Mile End) has the borough's lowest postcode median at £420,000 (500 transactions). The borough-wide lower quartile of £365,000 reflects the cheapest 25% of sales across all postcodes — achievable in E3 for well-priced resale flats.

Logical next step: Run the calculator with the Lewisham lower quartile (£286,875) as the property price. The numbers change significantly. Then speak to a mortgage broker to get a real AIP (Agreement in Principle) — that's what turns the data into a buying decision.

⚠️ This is a demo only. All Land Registry figures are from HM Land Registry public data. The calculator is illustrative — it uses simplified assumptions (25-year term, income × 4.5 rule, no SDLT/legal fees included). Actual mortgage affordability depends on your full financial profile. This guide does not constitute financial, mortgage, or property investment advice. Always consult a qualified advisor before making a purchase decision.

Ready to narrow down boroughs? The First-Time Buyer guide covers entry prices and the lower quartile by borough in detail. If you're still deciding which area to rent in while saving, The Renter's Borough Research Guide shows how sale price trends predict where rents are about to rise.

Run these queries yourself → Get access for £1.99