Why it is Better to Rent than Buy

The rental property marketing in the UK is currently booming. A decade ago, the property purchase market was booming, however because of the economic climate, renters have overtaken buyers. This is because many renters cannot afford to get onto the property ladder and finding a mortgage is more challenging than it used to be. Higher deposits that are required by mortgage lenders, typically between ten and twenty per cent are also making it difficult to buy property.

So over the past three years there has been a gradual increase in popularity for renting property as an alternative to buying. Here are reasons demonstrating the positive aspects of renting a home compared to buying one.

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Financial freedom

With renting a home, there is no tie-in with a mortgage, all that is required in the way of financial payment is the monthly rent and a deposit that is refundable providing that the rental contract has been adhered to.
Renters can also rent space according to their financial situation, anything from a room or studio to a large house. Renters can also rent with other renters to share the cost of renting and perhaps live in a larger property that they would not be able to rent on their own.

Renters also pay a fixed rental payment unlike mortgage rates that can fluctuate according to the Bank of England base rate. This makes it easier to budget and an increase in the interest rate is of no interest to renters. Landlords, however, can put the rental rate up but the freedom enjoyed by renters means that if the rental rise is unacceptable, they can simply move to another property.

It’s easy to move

Renters can also move quickly and easily without having to sell a property and wait for months for a property purchase to go through. Rental contracts can be very flexible with short- term and long-term rental contracts depending on the availability of the rental property. Rental agreements can also be extended by a few weeks or months if required.

For renters who need to relocate to a completely new area, renting a home makes is easier, quicker and cheaper to relocate than purchasing a property. In fact some property owners will sell their property and rent a home initially in a new area in order to move quickly and subsequently go onto buy a property once they are familiar with and settled in the area.

Small outlay

Renters do not need to have a huge financial outlay when it comes to renting a property. All they need to have is the refundable deposit and the first month’s rent and subsequently pay the rent every month. Compare this to buying a property and buyers need to have a deposit lump sum as well as pay for other costs such as solicitors’ fees, search fees, mortgage arrangement fees and survey fees. All of these additional house purchase costs amounts to thousands. If a buyer already has a home there are the additional selling costs, such as estate agent fees, as well as their buying costs.

No maintenance costs

When renting a property, renters do not have to pay maintenance, building or repair costs on the property they live in. The maintenance and repair of the property is the sole responsibility of the landlord and anything that is broken or in disrepair should be fixed. This applies not only to the building itself but any appliances that are provided as part of the rental contract and plumbing, heating and electrical systems within the property.

Fleur Rowan writes for What House? which specialises in new build homes across the UK.

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