Is there still a desperation to own your home in the UK or is 'Generation Rent' here to stay?

Is property ownership the ultimate goal in life or is Generation Rent here to stay? This article looks at the pros and cons of living in a rented property, read on to see if you should be saving up to get on the property ladder or not.

For many years in the UK, society has told us that owning our own homes is the ultimate goal in life. Generations that have come before us have been able to buy a property and pay off the mortgage so that they have the security of the roof over their heads, as well as the investment, to protect them into their old age.

Coined 'Generation Rent', it is more likely that young adults in the UK will not buy a property. In fact, the average age of a first-time buyer has increased in recent years to 34. But is buying a home still better than living in a rented property long-term?

It is widely reported that property prices have increased post-pandemic, and in the wake of this increase, many landlords have sold up, creating a shortage of rental properties and subsequently causing rent prices to rise, too. Not to mention the cost of living crisis - everything seems just more expensive now. Perhaps renting is a viable option for people in the long term, and there is no need to rush to buy your own property.

Whilst the positives of owning your own property are frequently discussed, renting property is not discussed quite so often. But there are many reasons that renting a property is excellent, and we will explore some of those here:

1. It is faster - Arranging a new tenancy is remarkably straightforward compared to buying a property. The legal process for property purchases is lengthy and complex, not to mention expensive. In contrast, the average application for a rented property takes a week or two, and the process as a whole can be completed in around 1 month, making it an ideal solution if time is not on your side. This simplicity and speed can provide a sense of ease and comfort, especially for those who may feel overwhelmed by the prospect of a complex and lengthy buying process.
2. Lower commitment - The speed of the process when renting means that it is a lower commitment than buying. You can simply hand your landlord a month's notice (as long as you are outside of your fixed contract time) and move on. This flexibility and control over your living situation can be handy if you need to relocate for work or schools or simply fancy a change. Because of this level of freedom, the decision to move into a property is also not as difficult because if it isn't right for you, you can move on to somewhere new in 6 months, which is obviously not the case if you own your own home where the average homeowner stays for 7-8 years.
3. Applications are free - There is no charge to a prospective tenant to apply for a property, so it is, in fact, very cheap. There may be a holding fee, but this will make up the first rental payment when you move in (it is also important to note here that this reservation fee may be compromised if you fail the application through adverse credit or negative previous references).
4. Deposits are capped - You will likely be asked to pay a deposit for the property. This is to be held somewhere like The Deposit Protection Service, or the agent or landlord must take out insurance to protect it. You must be informed from the outset how and where the funds will be held and, crucially, how you get that deposit returned at the end of the tenancy. The important thing here is that the amount payable is capped, so there will be no exorbitant deposit to find, unlike when buying a property.

Renting a property is a quick, relatively simple, and cost-effective way to move house. It is easy to see why younger adults are opting to stick with renting rather than trying to save up a hefty deposit and putting themselves into thousands of pounds worth of mortgage debt.

Of course, as with all things, there are cons to all of these pros. It is not your house, but your landlord's, meaning that you can't randomly decide to paint the kitchen ceiling neon pink in a moment of inspiration. You must ask permission before undertaking any DIY or alterations. However, the other side of this point is that it is the landlord's responsibility to repair things.

There is also the potential lack of security - the landlord could serve you notice, and you would have to move out. This is likely to be the biggest concern for a tenant, and something that owning your own home will rectify. However, most landlords seek a good tenant who pays the rent and takes good care of the property. If you do this and renew your tenancy each year, you can be confident that you are secure in that property. This reassurance can help alleviate any anxiety about the potential lack of security in renting.

There is always a market for rented property, and as long as owning a property remains a good, solid investment, there will always be landlords.

If you have any questions about renting a property, get in touch with our team today who are always there to help. Click Here