Hmm, difficult one this as there's so many different situations. For example, where you live is a big factor due to price. Also, would you be planning to get a mortgage with somebody (partner/friend), and your financial situation. If you're not on mega bucks or don't have a rich relative and were getting a mortgage in London on your own, then I'd say renting would definately be better. But then again, you're paying �265 a month to line someone else's pocket - as my Dad would say, its 'dead money'. Like you say, a mortgage is so much better as you;re investing into it (provinding you don't get negative equity which is always a risk you have to take) but it s only better if it suits your current situation. I'm sorry if I've been too personal here, and the fact that I'm warbling on, but its a hard question to answer. I'll shut up now. :)