Renting More Popular Than Buying
Published: 31 August 2011
By Julian Stone Leave a Comment
Updated: 31 August 2011
There are almost twice as many people renting rather than owning their homes, according to research by a specialist insurance company.
There has been a definite change in the property market in recent years resulting in 48 percent more people renting than owning their own home, Endsleigh Insurance Services has discovered.
Renting is most popular in London and the home counties with generally more renters than home owners found in the South of England.
It is not just the difficulties of gaining a foothold on the property ladder that is convincing more people to rent as opportunities to move to different areas and a greater freedom in to try various types of accommodation is also attractive to tenants.
Many renters feel that they can live in a better property than they can afford to buy, even though recent findings by the Halifax show that renting is now more expensive than buying an equivalent house.
The research by Endsleigh did indicate that renters see that being a tenant is not a permanent situation, as 62 percent intend to buy their own home in the next five years.
The desire to own their own property in the future maybe a significant factor in predictions by the National Housing Federation that house prices look set to rise by 20 percent in the next five years.
Although there is a larger range of properties available to rent as more homeowners choose to let their home, rather than sell it, tenants should make sure that they are not paying unaffordable levels of rent, as Carlos Thompson, Endsleigh’s Head of Business Development points out:
“More choice and flexibility on the area and type of accommodation available is good news for some tenants. However, whilst more properties means more choice, the surge in renting means there can be fierce competition in applying for a property, and there is a real risk that tenants will stretch beyond their means and choose somewhere that they wouldn’t normally, just to secure a property.”
MoneyHighStreet.com Comments: It is indeed true that you can often rent a better property than you can afford to buy, particularly if your circumstances mean that securing a mortgage is difficult, however renting a property can create a transient attitude in which you don’t put down roots and commit to a particular area. If another area appeals, there is little to stop you moving there.
One major problem with being a tenant is that you are at the mercy of landlord. If he/she decides to sell or move into the property themselves then you will be forced to move at the end of the tenancy, even if you would prefer to stay.