With UK property prices hitting record levels and around 20% of the population renting (being approximately double that of 2000), renting is definitely on the rise however homeownership can still very often be viewed as the ultimate individual aim by society.
In addition to this, things such as increased mortgage interest rates and the overall cost of living being on the rise can mean that homeownership is only set to get harder over the next 12 months.
Whilst owning your own home can often be seen as the ultimate goal, renting does bring with it several benefits which mean that homeownership is not right for everyone. We have compiled what are probably the most common pros and cons of both renting and homeownership.
Renting
Pros
- Flexibility – You’re not tied down to a location for long and can move at relatively short notice
- Maintenance is the landlord’s problem – If the boiler breaks, roof leaks or there is any other big issue, you don’t have to arrange (or pay) to get it sorted. This can be a big weight off the mind
- Renting may actually be cheaper – If you consider the cost of ongoing maintenance, you could find that renting is actually cheaper than homeownership (particularly if there is a large issue such as a leaky roof)
Cons
- Money matters – Whilst you may find that renting could be a bit cheaper, you do not benefit from any increase in value and increasing rents can end up leaving increasingly less for that rainy day fund
- Rogue landlords – The majority of landlords are certainly good, however, if you find that you get stuck with a rogue landlord you could be in for problems such as failing to keep up maintenance, withholding a deposit and more
- Insecurity – Generally, tenancy agreements are 12-24 months, and because of this, there can be ongoing insecurity about where to live over the long term
Home Ownership
Pros
- Security – There’s nothing quite like the security that owning your own home gives. Not only this, but you can have pets if you like, change appliances etc without anyone stopping you
- Stylistic freedom – Fed up with beige walls and bland design styles? Owning your own property means you have complete stylistic freedom to decorate however you like
- It’s an investment – Owning your own home is a great investment. You benefit from the property going up in value over time and it can make a big difference the longer you own it
Cons
- Household expenses can vary – Whilst owning your own home can appear to be cheaper, you are responsible for all of the maintenance. This means that, for example, if your boiler breaks, you need a new roof or replacement kitchen the costs can be significant
- You’re a restless soul – Generally, purchasing a home means you are putting down roots for a couple of years (often 5+) and this can give you less mobility. In addition, considering the costs associated with moving it may not prove financially viable to move too often
- Keeping up with mortgage repayments – Not paying your rent will lead to you eventually needing to move, however not paying your mortgage can have even more serious repercussions. For example, not only could your property get repossessed, and you have a black mark on your credit file, but you could find it hard to get a mortgage in the future (or the costs of it being higher)
Which Is Better? Owning Or Renting
You will see how, whilst money plays a big part in deciding whether to buy or rent, there’s a lot of other factors you will want to consider.
Your lifestyle plays a big part as does whether you’re willing to commit to a long-term decision. For example, if you are thinking about starting a family then homeownership probably is a good idea, however, if you are wanting to go travelling and need the flexibility then renting may be a better option for you.
If you are purchasing a property and have any questions, then we will be more than happy to help where we can. You can either call us on 01322 553282 or contact us online.