Traditionally, renting a property has been seen as a stepping stone to one of life’s greatest milestones – becoming a homeowner. But with over four million people in the UK now living long-term as tenants, the reasons for choosing to rent are becoming more diverse.
From saving for a mortgage to seeking the convenience of being able to move around, there are more reasons people are renting than ever before. Here, we take a look at just a few reasons renting a property is a great option.
Smaller start-up costs
One of the biggest reasons that many people can’t get onto the housing ladder is simultaneously one of the best things about renting. If you want to buy a home, you typically have to put down a minimum of ten percent of its value as a deposit. However, with renting this is not a consideration you have to make.
It means that there’s no compromising on what you want. That three-bedroom semi-detached you want to live in might just be that bit more achievable in the rental market than it would be if you were buying. And on top of that, having no deposit to pay means you have more money to make the home your own – get that dream sofa that really makes your living room pop and gives you that feeling of comfort every day.
Lower running costs
As well as not having to fork out as much when you move into a property, the ongoing costs of living in a rented home are also far cheaper than you’re likely to face as a homeowner. If your boiler breaks down, you’re not going to be faced with a huge repair bill as your landlord deals with such things.
This means you have more money to dedicate to the things you love. If you want to make the property more your own, you don’t have to worry about unexpected bills, and can instead dedicate some of your savings to new furnishings and decorating the place.
It’s a flexible option
One of the biggest reasons many younger people choose to become tenants rather than homeowners is the sense of freedom it gives them. If you’re a homeowner, moving to a new area can take a long time. You’ve got to sell the house, you’ve got to find somewhere new to live, and you have all the mortgages and financial dealings to factor in.
For tenants, the ability to leave at relatively short notice is a massive benefit. Picture the scene, you’ve landed yourself that dream job in a new city, your tenancy is nearing an end, and you can chase your dreams at short notice; perfect for the upwardly mobile young professional.
Of course, not everyone wants that flexibility, and the flipside is that the rental market can also give you a lot of security if that’s what you’re looking for. As the market changes, more landlords are now offering longer tenancy deals, so if you find a place you love, you can settle down for a number of years knowing there’s no risk of needing to move any time soon.
This security also brings with it a financial benefit. While those who own homes might be nervously looking out for the interest rise that will negatively affect their monthly payments, you know that your rental payments are set in stone, so you don’t need to worry about any looming rises in cost.
You can invest elsewhere
If you buy a home, the chances are that you’ll have a lot of your savings tied up in property. But for those who rent, the decision to live as a tenant opens the door to a world of financial opportunity. If you’ve got savings, you will have the flexibility to invest these in different areas, be it stocks and shares, gold or the increasingly popular cryptocurrency.
As a tenant, you can track the markets to see what’s doing well, and invest wherever you please without being tied in.
Make your rental house a home with your dream sofa from the Sofology collection.