In the Press - Renting Vs Buying

Renting v Buying

For years the UK has resisted following the well-established trend in mainland Europe for renting residential property. In Germany for instance, approximately 60% of the population live in privately rented or some kind of subsidised rented housing, the highest in Europe. We have always preferred to buy even if the property is only going to be kept for less than 2 years.

Our strong tradition of home ownership really began with the formation of the Friendly Societies back in the 1830s. The societies made it possible for people to raise mortgages and buy their own homes, long before our continental neighbours began to. Considering the nation's obsession with news about interest rates, the housing market and property prices, it is easy to see why tenants and the world of renting property are often forgotten.

Most of us aspire to owning our own bricks and mortar at some time in our lives but there are always going to be times when you're better off renting. Although fewer than 1 in 10 homes are privately rented, this figure does not include the millions of housing association tenants, council tenants, students and residents of homes that are rented out through professional lettings agents.

With property prices so high these days, it is not surprising that many people still find themselves unable to buy, or else choose not to take that first step on the housing ladder. For others, it is a logical choice given their way of life. Popular belief tends to dictate that buying a property is a far shrewder option than renting. Renting is dismissed as pouring money down the drain, and is commonly viewed as a poor option to buying. However, renting in the immediate future does have certain advantages over buying, particularly when the housing market in Scotland is buoyant.

Here are a few advantages of renting:

Renting allows you greater flexibility. If you don't like the place or the area, or you find a job in another part of the country, you can just up sticks and move.  No furniture to buy if you rent a furnished home, and no buying fees from solicitors and estate agents. And if you lose your job, the DSS will help out with rent - they're not so accommodating with mortgage payments  Letting is often more economical. Deposits, solicitor's fees, surveys, stamp duty and removal costs when moving in added to estate agent's fees, solicitor's fees and removals costs when moving out can cancel out any increase in property value over the period of occupancy.  Property and utility maintenance is all part of the deal. It's the landlord's responsibility to keep everything working and you won't have to bother with repairs.  As any financial adviser will tell you, it's not certain that the value of your house will increase. Live in the wrong location and you could suffer that dreaded negative equity. Remember the rule of thumb 'homes are for nesting, not for investing'.  When other relocation costs are brought into the equation it can be a false economy to buy a home for a short period. You'll have to fork out for all the professional fees, plus the additional bills for insurance and furniture and fittings once you move in.  Maintenance and DIY costs always come just when you don't need them.  You have to be committed. Not only in your ability to meet your repayments (what would you do if you lost your job?) but also in your desire to stay put. Moving around isn't as easy when you own a house or flat.  It is still often less costly to rent than buy in highly desirable areas, such as Central Glasgow and Edinburgh. This may give you more freedom of choice as to the area you wish to live in, even if temporarily.  Renting offers greater flexibility and mobility to professionals who need to be on the move. It's also far more convenient if you are relocating from overseas for employment.  It is the responsibility of the landlord or agent to sort out repairs on the property, although private landlords are not always as speedy in putting things right as when an agent is involved.  Would-be buyers concerned about buying overvalued properties are increasingly turning to the rented sector. The costs of moving and the increase in stamp duty may also deter people from buying, especially if they suspect they'll have to move again in the future.  Renting is much more commonplace on the Continent and is acceptable as a practical choice while saving for a deposit.  Some people simply don't want the hassle of home ownership. Residential letting is now an important part of the property market. Certainly people are waiting longer before getting on the property ladder. With a larger percentage of the workforce on short-term / fixed contracts people are less able or willing to commit to a mortgage. The choice is yours, but consider renting - it's an attractive option.

Next week Susan Maxwell looks at apartment living. Comments, questions and opinions can be e-mailed to me at andrea.leonard@strathclydehomes.com or posted to me at the Express. If you are thinking of renting or buying a property contact Susan Maxwell at Strathclyde Homes on 0141 2217001.

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Further media information: John Benn Elan Public Relations 01436 672600 or johnbenn@elanpr.co.uk