Should I Buy or Rent in London?

If you’re contemplating a move to the UK’s capital, you don’t need us to tell you the many reasons why London is such a thrilling city in which to live and work. There are the unparalleled career opportunities across this global town, alongside its diverse culture, world-class museums, theatres and arts venues, restaurants and more – not to mention the excellent public transport (meaning you can often manage without a car), abundant green spaces and prestigious educational institutions.

But one thing you may be wondering if you’re considering a relocation to or across the city is whether you’d be better off buying or renting. Obviously, the answer will depend to a large extent on your individual circumstances, financial situation and personal preferences.

So, here, we aim to weigh up the pros and cons of both, to help you make an informed decision, although you will, of course, need to do your own research, too.

Why consider renting?

• The flexibility

Renting in London can be great if you’re not sure how long you’ll need your next home for. So if a move for work is on the cards, or you may be making some lifestyle changes in the next few years, such as moving in an elderly parent or expanding your family, renting can offer real flexibility. That way, you avoid the extra costs associated with buying or selling a place when the time comes to move on.

• Less in the way of upfront costs

Typically, there’s less to pay upfront when you rent in London – including, for example, hefty deposits, stamp duty and other fees which are part and parcel of purchasing a property.

• Lower monthly outgoings

In some cases, renting can work out cheaper than the combined costs of mortgage repayments and other regular expenses associated with home ownership, e.g. maintenance. One respected industry website says that London rents, as of June 2025, were down 5.1% compared to June of last year, and 4.5% lower than June 2023. The same article indicates that tenant demand has not gone up in the same way it has done in recent years. (Although London rentals generally remain competitive.) And volumes of new lettings instructions in the year to July 2025 were 9% behind the same period for the previous year in London. June typically saw 40 viewing requests per property, which may sound a lot, but in fact this is almost a quarter (23%) down on June last year. Equally, demand is 50% lower when compared with June 2023. (Although other figures say demand from the city’s corporate relocation market has held firm.)

The benefits of buying

• You get to build a long-term home

If you’re planning on staying in town for an extended period, buying allows you to build equity in a property over time, and benefit from its capital growth, giving you greater financial stability. You’re also making a lifestyle choice in that you can personalise your space and make it your own. You’ll enjoy a feeling of permanence and ownership, since no landlord can announce they’re going to sell up, leaving you to find a new home.

• It could be cheaper than you think

According to one figure, within the prime central London property market dipped an average of 3% in the year to July, while prime central property prices are, according to the same article, a fifth (20%) below the peak of a decade ago.

And, in August, the Bank of England cut interest rates for the third time in 2025, to 4%. It says that it should be able to make further cuts “if the economic situation remains stable”. This can only be good news for anyone thinking about buying a home, especially in London, where property prices are obviously higher than the rest of the UK, even if the gap has been narrowing in recent years.

Rent or buy in central London with McGlashans Property Services

Established in 1988, McGlashans Property Services is a family firm with extensive expertise in the prime central London market. We specialise in sales and lettings across our area, and have detailed knowledge of both as the capital’s property markets continue to evolve rapidly. So we offer a unique understanding of the unique way in these sectors work here.

Our exclusive, bespoke approach means we treat each customer as an individual. Get in touch today to learn more, and to tell us a bit about what you need.