Rent vs Buy, has there been a change? There is a negative stigma surrounding the idea of renting rather than buying a house. Many people would think that if you were renting, it’s because you can’t afford to buy. However, this is simply not true in 2022. More and more millennial renters are now choosing to rent. They want to avoid the stress and baggage that comes alongside having a mortgage. Rather than seeing renting as dead money, for a lot of people the benefits of renting simply outweigh the benefits of buying a house.
Rent vs Buy, do people rent by choice?
Renting by choice is on the rise, especially amongst the younger generations. The stigma around renting is decreasing considerably due to the benefits of renting and the housing ladder becoming increasingly difficult to get onto. The average age of a first time buyer has now risen to 34 years of age due to the ever increasing housing prices. This leaves a lot of people with no choice but to rent. Do people really feel forced to rent or are the benefits of renting something they are ultimately happy with?
There is research to suggest that the number of people renting is expected to surpass the amount of homeowners by 2039. Following COVID-19 and the recession and housing crisis, it seems renters like the financial, along with other benefits of renting vs owning.
The Benefits of Renting vs Homeownership
Arguably the main benefit of renting is the flexibility that it brings. Renting gives you the freedom and flexibility that you just don’t get with owning a property. With rental property flexible contracts might be the ideal option for younger people finding their feet. It allows people to trial and error different cities or countries even, before fully committing to anything.
Another major benefit for people when it comes to renting is that there are no unexpected costs like there are with owning a house. For example, if your boiler stops working when you own a house then it’s up to you to fix it and that can be costly. With renting, it’s usually up to the rental property company to sort that out, free of charge so there are no hidden, unexpected costs. Obviously, this will depend if it hasn’t been caused by something you have done. This can be better for people trying to budget because you pay your set amount of rent every week/month without having to worry.
Along with these benefits there are also more that includes the fact that you may be able to rent a bigger home in a nicer area than you could afford to buy and the fact that finding a house to rent and renting it is a quicker process than buying a house.
Increasing demand for parking, outdoor space and pet friendly homes
- Compared to Summer of 2020, there has been an increase of 120% for people wanting pet-friendly properties. According to the Pet Food Manufacturers Association, more than 3 million households have acquired a pet since the beginning of COVID-19. Over half of new pet owners are between the ages of 16-34 years old.
- There has been a 70% increase in demand for outdoor spaces from last year. It’s become more important than ever before that people have access to an outside space, whether it be a balcony or a garden of whatever size.
- There has also been an increase in demand for parking. From last year there has been a 40% increase in demand for this feature when renting.
Market Trends for renting and 2022 predictions
- The increasing demand for rental properties has seen the value of the UK rental market sky-rocket to £66.7bn.
- Zoopla’s quarterly Rental Market Report suggests that average rental prices are rising across the UK due to high tenant demand and a lack of available properties.
- Rents are forecast to rise by a further 4.5 per cent by the end of 2022.
Despite the rising house prices, it is clear that a lot of people actually want to rent and are happy with that being part of their long term plan, instead of feeling forced to do it. Don’t worry if you aren’t ready to commit to a mortgage, take a look at the rental properties on offer.
