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Is Renting a more affordable option than Buying?

12th February 2015 Simon Holland

Last week Britain’s most expensive one bedroomed flat went on the market at a dizzying £9.9 million! You may be surprised to hear that it’s not located in Ramsbottom or Manchester, but in the exclusive One Hyde Park development in Central London, which is clearly the most expensive apartment block in the UK!

Of course, the vast majority of us would not even dream of considering buying such a property. Well, we might dream, but the simple fact is that unless we win the lottery, or perhaps discover the cure for the common cold, we are unlikely to have anywhere near the necessary funds available for such a purchase.

That said, with mortgages becoming increasingly difficult to secure, and required deposits still remaining high, for many of us even owning a ‘two up, two down’ is proving out of reach in the current market.

This is precisely why renting is often a much more affordable option. Other than admin.fees to cover tenant referencing, a security deposit and the first month’s rent payable in advance, the costs involved to get you in to your own property are much more affordable.

Without having to worry about changing interest rates impacting on your monthly mortgage repayments, you are also more secure as you will pay the same amount in rent each month. Of course, your landlord may increase the monthly rental amount occasionally, but generally speaking, this is unlikely to have a huge impact on the property remaining affordable for you and your family.

Ongoing maintenance costs are likely to be significantly less as well for a property you do not own. This is because you will not be held financially accountable for anything that goes wrong with the property itself. Although you will have to take care of the property and undertake general maintenance, for example, paying a window cleaner, or arranging for a gardener to mow the lawns, you will not be liable for faults with the property itself. For example, if the boiler were to breakdown, or a pipe burst in the property, it would not be your responsibility, and more importantly, you would not be expected to pay for the repairs.

Another plus side of renting, and one which may not have much to do with the financial side of things, is that it’s a lot easier to move. If you need to relocate for any reason then it is a fairly straight forward process. You simply give one month’s notice, depending on the terms of your tenancy, and leave at the end of that period. When you own a property, you may find you have to stay until you are able to complete the sale, which in some cases, can take months if not significantly longer.

For more information on renting a property across Greater Manchester or East Lancashire, feel free to call Simon on 01706 828229 to discuss your requirements, he will be happy to answer any questions you may have.