Renting is more popular in the UK now than in the previous ten years. In 2017, 4.5 million households were living in rented accommodation, in contrast to 2.8 million a decade prior. It’s obvious from that leap that there tend to be more of us favouring the simplicity of renting a house instead of saving for a hefty deposit in order to own one. So, even though many have aspirations to get on the property ladder, it is evident that for some being a tenant is actually a far more appealing option.
In the event that you are presently renting and would like to know why this might be better for you than purchasing, below are several top reasons why it can make good sense to stay put.
Freedom and Flexibility to Move
Whether you are a first time buyer or you are buying your next property, dealing with the property market can easily be a long, hectic process. Keeping the freedom to move around without needing to be concerned about being a part of a chain or even being gazumped at the final second is actually a significant draw for renters.
Don’t Limit Your Life
As a tenant, you have a specific idea of just how long you are able to remain at the property, and that means you are able to simply begin searching for alternative accommodation if you don’t wish to renew the tenancy at your current place. This can be particularly advantageous as you are able to relocate to a completely different area, city, or perhaps country when your agreement comes to an end with no hassle (apart from the general hassle of moving house, that is!).
Sometimes, you may be in a position to end your contract early which adds yet another degree of flexibility. Should your circumstances change and also you have to move on fast, this is especially helpful; if you were tied into a mortgage it might be impossible.
No Mortgage to Pay
A mortgage is an enormous debt. Actually, it is probably the biggest debt you’ll ever take out and it takes decades to pay off in most cases. If a homeowner has to miss a payment, their credit will be negatively affected, and they might even lose their homes.
While there are repercussions to think about if you stop paying your rent, like the risk of eviction, you’ve much more chance to search for rental properties at a price tag that fits your income should your circumstances change. An understanding landlord will be helpful too, but either way, if you lose your job or have to take time off, it’s much simpler to keep going when you rent.
Mortgage Payments
As a tenant, your rent is set by the landlord. If they want to increase it, you can choose to stay and pay or leave. It’s simple. If you have a mortgage, the repayments are affected by interest rates and if the interest rates rise and the payment increases, you are tied into paying the more expensive mortgage. You can look around for a better deal, but this can be costly due to arrangement fees, and you might even have to deal with an early repayment fee too.
Less Work For Renters
Being a homeowner would mean you’ve responsibilities towards the property you own and these can be costly. Everything from ensuring the roof is in good repair to checking out the boiler is in working order are issues you need consider.
Renters, on the other hand, are not accountable for the upkeep of the property in the same way. You do still need to be careful with the property – remember, it’s your home but it’s the landlord’s house – but any major repairs should be dealt with by the landlord, unless your tenancy says otherwise.
Renting Is Lower Cost
The price of moving home as a homebuyer is pricey. With estate agents costs, legal costs, stamp duty as well as removal expenses you can very easily be taking a look at a good few thousand on top of the deposit you had to save up for.
When you start a new tenancy, there will be a five week deposit plus the first month’s rent, and that’s about it apart from hiring a removal company too. Much, much cheaper.