Your Home - Rent vs Buy
The property market is on everyone’s lips. Whilst rental demand is flying, many are still stacking funds away to raise the deposits needed to buy their own home. Other countries have a different outlook than the UK, as The Guardian once said, ‘Brits buy homes, the Germans rent’ and there’s no doubt that regardless of which option we choose, we all need a roof over our heads. What’s classed as ‘the norm’ in one country won’t necessarily stick in another. So with over half of the UK’s first time buyers choosing to rent before they buy, here we’ll drill down into research done by Clydesdale and Yorkshire Bank to discover what the good people of the UK are swaying towards:
54% of first time buyers rent before buying
Choosing to rent before you buy is common practice. Not only does it give you chance to see if your flat mate or other half is a messy good-for-nothing, but it also allows the flexibility that purchasing a house doesn’t. The freedom to live in certain city centre locations and have the ability to up-sticks and leave if you find another job that’s miles away can often be major positives.
35% stay at home with family
Whereas it mightn’t be cool to stay at home with the parents, 35% of people choose to stay at home with family. With 39% living rent free – we don’t blame them! 61% pay monthly rent and 21% contribute to the household bills in some way, shape or form.
Many are financially better off by sticking at home for a while longer. It allows you to save up for a deposit, nice holiday, or whatever tickles your fancy. Either way, you can build a nice buffer so when the time does come to move out, you’ll have a nice little sum stashed away.
6% rent but then stay at home in order to save for deposit
Although it’s a small percentage, it’s increasingly common for renters to move back in with the parents once they’ve made the decision to buy. Yes, you may have grown to love your new found independence, but sometimes, it’s the only way to reduce outgoings whilst saving for a deposit.
56% feel the pressure to buy a home
Nobody likes pressure. Especially when there are large sums of cash to take into consideration. There are a number of schemes available which were created to help first time buyer’s jump on the property ladder and we can recommend professional mortgage advisors who can talk you through these options. Government incentives are helping increase the number of first time buyers and with mortgage rates currently at record lows, we may find the percentage of people under pressure to buy a home experiences a decrease over the next 12 months.
If you’re searching for a property, you can view our rental properties here, and homes for sale here. Speak to our estate agents & letting agents today at our Manchester office on 0161 637 8336 or Liverpool office on 0151 305 2577.