In the last decade the proportion of people renting has risen dramatically. 20% of all UK households now live in the private rented sector.
Here we look at some of the reasons why people are choosing to rent over home ownership:
No Large Deposit
Renting means that the only upfront cost to tenants is the security deposit, usually one or two months rent, which they get back at the end of the lease.
A mere fraction of the deposit needed to buy a home. In the UK, the largest mortgages you can get are 95%, meaning a potential homeowner would need a deposit of 5% of the property’s value.
At the end of 2018, the average UK house price was £230,776 making the minimum deposit required £11,538. However, the mortgages with the best and lowest interest rates only become available with a larger deposit.
For a lot of people, even saving for a 5% deposit would take years. If they’re not ready or unable to commit to saving for a significant length of time, then renting is the far better option.
Tenants not only avoid the cost of buying a home but also, the unseen expenses that aren’t immediately obvious, such as: insurance, taxes, utilities, maintenance, interest rises and general upkeep. Those costs add up and can have a surprising impact on a monthly budget. With renting all these expenses are covered either by rent or the landlord, as they occur.
Specifically, purpose-built rental accommodation offers tenants not only a place to live, but a lifestyle to embrace. With luxuries, such as: a concierge service, launderettes, cafes, gyms, cinema rooms, shared work spaces, and sky lounges; residents can relax and take full advantage of what’s on offer. A variety of shared and social spaces means that the complexes foster dynamic and vibrant communities for all residents to be part of.
Moving to a different city? Downsizing? Pursuing a new job opportunity?
Renting makes all those things easier, and less costly. Tenants are not bound by the constraints of homeownership that would make moving a tedious process, they don’t need to find a buyer or ensure they funds for a deposit for another property. They can stay in a rented property for as long as they wish to.