Posted on Friday, November 10, 2017
The numbers of households living in the private rented sector has doubled over the last ten years and this trend looks set to continue.
According to a recent YouGov survey, it’s estimated almost one in four UK households will be renting privately by the end of 2021.
Whilst the majority (30%) said they were renting to save a deposit to buy a home, it’s worth remembering there can be other reasons why people choose to rent.
Renting can allow people to live in areas they could not otherwise afford to buy. You can choose the location and lifestyle you prefer with many young people opting for trendy urban living. You can also ‘test’ an area before committing to buy with no costly Stamp Duty, legal and selling fees if it doesn’t prove to be the right location.
It’s more affordable than paying a mortgage. For a start, a mortgage requires a considerable down payment compared with renting. There is no cost on maintenance and repair bills and you know exactly how much you need to pay in a fixed-term contract. It can open up other saving options and investments so not all your funds are in one pot.
Not everyone wants to be tied to a particular place or area. Renting can give you the flexibility to move around, change jobs easily or travel. It can be a good solution before making long-term plans for the future. You know exactly the date your Tenancy will end and as such can plan a fresh move with certainty.
Some homeowners choose to sell their property to release equity for their families, holidays or weddings…just as a few examples. Renting can sometimes be a preferred option when people choose to downsize from their family home.
Typically, there is a property chain when it comes to buying a house. Some people choose to rent to make the whole process run more smoothly. If you are not in a chain, you are in a stronger position to purchase. This can give you some real benefits when it comes to buying your first or next property.