While it’s still the dream for many of us to own our own homes, rising mortgage rates and the squeeze on the cost of living have made that ambition harder to achieve.
According to a survey by the online comparison and switching service Uswitch, 852,000 first-time buyer mortgages were approved between 2021 and 2022. That may sound like a high figure, but it’s actually 100,000 down from the number approved the year before.
If you are currently deciding whether to rent or buy a house, it may be worth looking at some of the advantages of renting.
Flexibility
One of the biggest benefits of renting is that it enables you to be flexible. When you rent a property, you can enjoy the freedom and convenience of living where you want, with no long-term commitment and without the financial burdens of homeownership.
This is particularly important if you’re at a stage of your life when you want to try things out. For instance, if you are not sure which area works best for you or you’re weighing up different job opportunities. In either of those circumstances, being tied to one particular location could hinder your chances of finding the right job or discovering the area that works best for your lifestyle.
Follow the job opportunities
Flexibility can be a real advantage in today’s fast-moving jobs market. When you are renting, you can respond to new opportunities quickly. With as little as a month’s notice to your landlord, you could be on your way to your ideal job in a different area.
To borrow the words of that well-known Red Bull advert, renting “gives you wings”: you will avoid the long-drawn out process of selling your property when you need to move quickly.
Upsizing or downsizing?
If your personal circumstances change, you are less likely to experience long-term disruption if you are renting.
Whether there’s a baby on the way and you need to add more bedrooms, or the kids have left home, and you’re downsizing, there is less hassle involved with a rented property. You’ll be able to adapt to your new situation more quickly and easily, and that leaves you free to focus on those essential new life directions.
Dispense with DIY
One of the main issues to consider when asking yourself, “should I rent or buy a house?” is whether you will be able to afford the long term costs of repairing and maintaining your home.
As well as regular maintenance tasks such as servicing the central heating, clearing your gutters and maintaining the garden, you will need to deal with any repairs. Anything you can’t tackle yourself with a bit of DIY may cost a substantial sum to put right.
When you are renting, the question of upkeep rests with the landlord and their letting agency. If something goes wrong with your property, you won’t be the one calling tradespeople for quotes or paying out for emergency repair work.
Budgeting made easy
Homeowners are always advised to keep a pot of money for just such emergencies. For example, if you spot a damp patch in the ceiling or lose a few roof tiles during a storm, you’ll need to call in a builder right away.
When you pay rent, everything is covered, and there should be no nasty financial shocks if something goes wrong with the property (and you are not at fault). That makes it easier to budget and spend any money you save on something you can enjoy, like a holiday or a new car.
Building a credit history
Nowadays a good credit rating is essential, whether you are applying for a loan or considering a move to another rental property. Regularly paying rent provides a valuable opportunity to build a positive credit history.
However, while full and timely rent payments are a great way to build a good credit score, make sure your payments are recorded by subscribing to a rent reporting service.
Financial flexibility
If you choose to rent, you won’t have the opportunity to build up a property investment, but you could nevertheless benefit from the flexibility that comes from having no major financial ties.
It’s up to you whether you choose to start a business, invest in stocks and bonds, or re-train or help out a relative needing financial support.
Looking for an Ilford estate and letting agent? We can help!
If you’ve taken the decision to rent and are searching for letting agents in Ilford, why not get in touch with us?
We are friendly local lettings experts with deep knowledge of the area we serve, covering the postcodes IG1, IG2, IG3, IG4, IG5, IG6 and IG7. We have a fantastic portfolio of properties to rent in the Ilford area, and it goes without saying that we’d love to help you find your next new home.
Give us a call at 0203 972 7341 or email info@oaklandestates.co.uk.
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