Buying or Renting

Do I buy or do I rent?

In 2017, there were nearly 19.9 million homes owned by the occupier, and just over 7.7 million rented homes in the UK. Whether to buy or to rent depends on a wide variety of factors such as financial situation, lifestyle and personal preference.

Some people decide that they prefer to rent rather than having the responsibility of

  • Insuring the home.
  • Carrying out regular maintenance.
  • Dealing with a major item if it needs repair – like the roof, or major structural repairs.

Others choose to buy a house instead of renting because:

  • It is an asset that tends to increase in value.
  • Over the long term, house prices tend to increase and therefore can be a very good investment. Average house prices increased by 149% between 1991 and 2003 (i.e. from £62,455 to £155,627).
  • They prefer paying a mortgage to paying rent.

Renting a home

Renting is not only about paying a monthly rent. Other costs associated that many of us tend to neglect are:

  • A deposit to cover possible damages, which is held by the landlord and given back when you move out provided the property is not damaged.
  • A month’s rent in advance.
  • Possible legal costs charged to you by the landlord for preparing the lease agreement.
  • Insurance of your contents.
  • To be accepted as a tenant, a reference check is done by the estate agent, which normally incurs a charge.
  • Removal costs — incurred whether you buy or rent.
  • Possible new furniture.

Further information

The Which? website has some interesting reports and information about mortgages.

In-depth information on mortgages and housing can be found on the BBC website.