What Are the Advantages of Renting a Property?

Opinions on whether to rent or purchase a property remain split, but the decision is ultimately a personal one, depending on your circumstances and requirements. There are plenty of advantages to renting, especially in the current financial climate. Over the last decade especially, there has been a distinct lack of affordability in the housing market. According to The Institute of Fiscal Studies, more than 40% of young adults simply cannot afford to purchase property, and only one in five 25-year olds are homeowners. Furthermore, house prices in the UK have risen by a staggering 173% over the last two decades.

Based on those figures, it is not surprising to see a surge in private renting – some people simply do not have the funds to buy a house, or a means to keep up with mortgage payments – and that is okay. There are a few compelling arguments made on the advantages of renting that we will look at.

Flexibility

We live in a time when travelling and relocating has never been easier. People are slower to settle down for the long haul. Renting a property allows you flexibility and freedom to move around without being rooted to the spot by paperwork and large investments. There is no long-term commitment required, unless you want to, of course. There are various types of let available to suit your needs, from short agreements up to six months, or fixed-term agreements spanning over a year or more.

Fixed Rent Costs

Your monthly rental amount will be fixed for the duration of your tenancy agreement (unless otherwise stipulated), which will make it that much easier to work out an affordability budget. There are no nasty surprises when the housing market fluctuates from time to time with UK interest rates. Certain tenancies are offered inclusive of all bills, so you know exactly how much your accommodation expenses will amount to from month to month.

Smaller Deposits

Homeowners will normally have to to put down a hefty 10% of the property value forward as a secure down payment. The rental security deposit is much lower, averaging at the equivalent of 6 weeks' rent. As per the Housing Act 2004, your deposit must be placed in an approved tenancy deposit protection scheme, and be returned to you at the end of the tenancy – assuming of course, that you are not behind in your rent, and that the property was not damaged beyond the normal expected wear and tear.

Secure Tenancy

Once the tenancy agreement has been signed and sealed, you are protected by the rights described therein. As long as you are not in breach of contract, your right to occupancy is secure for the duration of the agreement.

Less Financial Obligations

Landlords take on the majority of the maintenance and repair obligations so you don't have to. It may not sound like much at first, but repair bills can add up to quite a sum once something goes wrong, as it often does. You will still be liable for the smaller, day to day maintenance costs, but any structural costs will be for the owner's pocket. You can also save a bit on insurance, as the building insurance will be covered by the owner. You are only responsible for getting insurance for your personal possessions. If you rent in a block of flats, the building costs such as garden maintenance and window cleaning will also generally be covered by the landlord.

Saving on Moving Costs

We are not talking about the actual cost of moving your belongings to a new property – that is inescapable. When you rent, there are small admin fees payable for reference and credit checks, but it pales in comparison to conveyancing and surveying costs, and stamp duty when buying a house.

Rent to Buy Option

The UK government launched an incentive in 2014 to assist the public to save the deposit to buy, whilst renting the property. These properties are available to rent below market value, but for a period of at least seven years. If you are looking for a long-term home that offers both security and affordability, the Rent to Buy Scheme can be ideal, and you can find more info on https://www.gov.uk