As the supply of rental accommodation dwindles, demand from tenants continues to go up, and for good reason, according to Paul Sloan, operations director for haart.
Sloan has identified at least 10 ‘good reasons’ for people to rent, even when they can afford to buy, and it’s “all good news for landlords and investors”.
“The truth is that millions of Britons still see renting as their best option – either short or long-term – and choose to rent,” he said.
Here are his 10 good reasons for people to rent:
+ Fear of Brexit. It’s fair to say that Brexit has introduced uncertainty into the housing market. There’s a trend of homeowners selling up and renting; speculating that property prices will fall post-Brexit, and they can pick up a bargain.
+ You’re not staying. Buying a house is a commitment of time and money, and with the average job currently lasting 4.6 years (less if you’re younger), you might get through 10 jobs in a lifetime. Renting gives flexibility.
+ You don’t know the area. You might plan to stay with the new job, but why rush into buying? Rent, and get to know where you live first – and then pick the right street for you.
+ It’s a separation / divorce move. Around 42% of marriages end in divorce, and of course unmarried couples separate too. These sudden moves result in one or both partners looking for a quick housing solution. Renting is the answer.
+ You want the cash. There’s no law that says you must downsize into your own home. People downsize into a rental and use their old house money for anything from a world cruise to home care.
+ You get more for your money. New homes tend to be smaller – on average a third smaller than they were in the 1970s – so a large rental may well give you more space than your own modern home.
+ You can’t be faffed. With all that deposit-finding, all that paperwork and all that house maintenance. It’s just daunting. You’ve got better things to do with your life.
+ You need the furniture. You’re moving into a furnished flat, and it helps because it’s a ‘divorce move’ or a first move out of the family home – or a second home by the sea.
+ Property prices in some areas are falling. Yes, in the long-term the price of a house goes up. But especially in the London area, 2018/19 just wasn’t the best time to buy.
+ You don’t buy into the whole mortgage thing. Britons are the most indebted people on earth, thanks to their big mortgages. Why would you join them?
Sloan added: “The result is that demand for rental property is inevitably outstripping supply, which is ultimately leading to a steady in increase in rental prices.
“Meanwhile, property values are rising over the longer-term, ensuring property remains a solid investment over the longer-term.”