The Pros and Cons of Renting vs Buying

Rent or Buy? That is the Question.

We rent and sell houses every day. So, we know a thing or two about the pros and cons. Renting gives freedom. Buying gives roots. There’s no one-size-fits-all. Read on to see which side stacks up for you.

Pros of Renting:

Love it. Leave it.

It's easier to pack up and move. No chain complications. No stamp duty charges. You can date an area before deciding to settle down. It's also perfect if you're relocating for work and only passing through.

Keys without high fees.

You'll need a holding and security deposit. And a month's rent. But that's generally less than the cost of a property. In the UK, the average price of a home is £268,000. For a 10% deposit, you'd need to save around £27,000.

No tools needed.

Boiler repairs. Leaks. Not your headache. The landlord typically manages maintenance. You can relax knowing you're not responsible for finding the right tradespeople.

Pay once. Relax twice.

Many rentals put utilities or services into the rental fee. Even when they don’t, you’ve usually got one core payment to focus on each month. Much simpler than juggling separate charges for your mortgage, council tax and other bills.

Extra possible perks:

• Built-in bonuses. Some rentals have communal spaces and amenities that are costly to buy outright. For example, gyms and swimming pools.
• Test-drive co-living. Thinking of buying with a partner or friend? Renting first is the perfect low-risk trial run.
• Instant social circle. Shared accommodation can be a fast track to meeting new people and settling into a new area.

Cons of Renting:

Your income. Their property.

Rent payments don't build long-term wealth. While you get a roof over your head, you don't gain equity. There are no financial returns when you move out.

Climbing costs.

When the Renters' Rights Act becomes law, landlords can only raise rent every 12 months. They must also give at least 2 months' notice. But if rent rises in your area, you may pay extra the following year to meet demand.

Goodbye. DIY.

Love redecorating? Tenants usually have limited control. Before signing, ask the landlord what changes are allowed. Some are more flexible than others.

No forever home.

A landlord could choose to sell up or let a relative move in. While you're not tied down with renting, you may have to pack boxes sooner than planned. The good news? The Renters' Rights Act scraps one-year agreements, so sticking around longer should be more likely.

Pros of Buying.

Pay in. Build up.

Property is a stable investment. House prices have increased by around 70% in the past 10 years. Your mortgage payments will also build equity. Over time, this could be your safety net or retirement support.

Turn a house into a home.

Knock through walls. Build an extension. Or simply replace the carpets and paint. You're free to do as you wish. While some things require planning permission, you get to design a house into a home that works for you.

Your Castle. Your Call.

Buying a home gives you control of your timeline. Stay for as long as you want. Move out when you're ready, not when a landlord asks.

Bricks you can pass on.

Buying a home isn't just an investment for yourself. It could be something you pass on. Whether as financial security for children, or as an asset you can hand down.

Cons of Buying

The entry fee.

Surveys, solicitors, stamp duty. That's before the deposit and extras like moving costs. First-time buyer schemes and 5% deposit options can make buying more affordable. Speak with a mortgage advisor to find the best deals.

No landlord lifeline.

When there's a leak or the roof needs replacing, you're now the landlord. Managing unexpected costs and maintenance comes with the sale.

No drop of a hat.

You can't just give notice and move on. Relocating could mean selling or letting your property. You may get caught in a housing chain, leading to possible delays.

Market mood Swings.

While a stable investment, mortgage rates can increase, leading to higher repayments. A mortgage advisor can find a deal that you can afford to pay, even with possible increases.

So… Rent Vs Buy. Which Is Right for You?

If you crave flexibility and want to explore an area before settling down, renting's your match. It's a low-commitment way to explore, without the strings of ownership. But if you're ready to build long-term security and have the financial means, buying could be the right choice.

Whichever you choose, we're on hand. Register your details with our lettings team to find the right rental. For buying, our mortgage experts will guide you through your options.