7 Benefits of Renting a Property

Homeownership is the average British person’s dream. However, for various reasons such as the current high cost of living, inflation, mortgage rates, energy prices etc., not everyone that desires to purchase a property can afford to. Therefore, this post is written to highlight some benefits of renting for those who wish to get onto the UK property ladder but cannot afford to purchase a property yet to consider.

With the distinct lack of affordability in the sales market, over the course of the last decade more and more people are renting, up to a third of the population in urban centres. Renting a property offers several benefits including:

1. Fewer upfront costs and paperwork- It is easier to save for a rental deposit which will not be anything like the amount you would need to save for a deposit on a house. Renters typically only need to pay for the first and last month’s rent, plus a security deposit. In the UK, your tenancy deposit usually cannot be more than 5 weeks’ rent if the annual rent is less than £50,000. If your yearly rent is £50,000 or more, it cannot be more than 6 weeks’ rent. Renting a property also means you do not need to pay for repairs, general maintenance costs, property taxes and or maintenance fees. The landlord is responsible for covering these costs. You do not have any expensive legal fees either that you get with buying a house.

2. Flexibility- Living in a rented property gives you the freedom to be more mobile, and you can even downsize to more affordable housing.  It allows you to live in an area you might not be able to afford to buy in.

3. Fixed rent amount- With renting, you don't have to worry about your rent increasing over time. Rent payments tend to be lower than a comparable house payment. On a monthly basis, depending on where you live, renting can be the cheaper option in the short term.

4. Save Money for other investments- Renting has a lower financial risk than buying, you can save money on housing costs and invest it elsewhere.

5. Low utility bills- Renters have lower utility bills because your landlord is typically responsible for paying the utility bills including electricity, gas, water, sewage, and waste disposal.

6. Building credit- Consistent rent payments can play a vital role in building or improving renters credit history if you cannot afford to buy yet.

7. Access to amenities: Another financial benefit of renting is having access to amenities that would otherwise be an enormous expense. When renting, you are able to choose a home depending on local amenities that may not be included in the purchase of a home like fitness centres, swimming pools, parks and lush gardens.

Thank you for reading. Feel free to comment, like, share, and subscribe! Contact us on 0203 576 3174 or via email: info@lpsandconsultancy.co.uk to speak with an Advisor today to help you kickstart your renting journey.