Pros and cons of renting your home

As house prices continue to rise and the cost of living continues to soar, there are more and more people struggling to get onto the property ladder. But with the stamp duty holiday coming to an end, longer conveyancing periods, and rising moving costs, staying in rented accommodation has its advantages.

The pros

1. Flexibility

One of the biggest positives for many tenants is the ability to give relatively short notice. And in an age where more and more of us are working from home, this ability to move at a moment’s (or month’s) notice certainly has its advantages. This is particularly true for younger people who are often on short-term contracts or work on a freelance basis, so having this ability to pack up and leave and start somewhere new can be vital for employment.

2. Maintenance is the landlord’s responsibility

When you own a home, you’re responsible for any repair costs, but when you’re in rented it’s the responsibility of the landlord. You don’t have to think about house insurance and massive maintenance costs. And if your landlord isn’t maintaining your property, you could be entitled to a housing disrepair claim.

3. Fewer expenses

Buying a property is a huge and usually long-term financial commitment, whereas renting saves you the expense of mortgages, home insurance, and maintenance. This lower monthly cost often affords you a higher standard of living.

4. Less risk

While it’s important when buying a home to invest in one that suits your needs, we often think the house will be worth more when we come to sell. However, there are no guarantees that prices will continue to rise. If you’re a homeowner with a big mortgage and property prices do fall, then you could end up with negativity equity.

The cons

1. No ROI

Because you never own the home you’re living in, you won’t benefit from any appreciation in its value over time. Despite you having invested in the property, there will be no return on interest.

2. Rent increases

When renting, you’re at the mercy of your landlord when it comes to how much rent you pay. Your landlord must give you a minimum of one month’s notice of any rise. If you have an assured or assured shorthold tenancy and disagree with a rent increase, you can apply to a tribunal.

3. Permission for changes

If you want to decorate your rented accommodation, you’ll have to get permission from the landlord. You will need their consent for any alterations or improvements you want to make. And there’s no guarantee they’ll allow you to make the changes.

4. Lack of stability

If your landlord decides to sell the property, you will have to move. Your landlord should give you written notice if they want to evict you, and this is usually around two months. If you have a fixed term tenancy the notice cannot take effect until the fixed noticed period finishes.

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