“Generation Rent” – to buy or not to buy?
Despite the massive savings from the Stamp Duty Holiday and the introduction of the government’s 95% Mortgage Scheme, it seems “Generation Rent” might just be staying put a little longer as recent data from Hamptons* indicates that, in many cases, renting a home can now cost less than purchasing a house – for the first time in 6 years.
Despite an average increase of 7.1% in rents over the past 12 months (8.0% outside London, and 5.6% within London), house prices also increased significantly and, along with higher loan-to-value mortgages, the costs soon begin mounting up.
In fact, for many of us, a monthly rent bill could now be coming in lower than a mortgage repayment, which has caused many first-time buyers to reconsider where they spend their deposit money.
So, what does all this mean for renters?
For those of you who may now have to stay in the rental world a little longer than planned, don’t be disheartened! We’ve got some lovely properties coming to the market all the time within Newport and Shifnal, as well as in rural locations within Shropshire and we work with incredible landlords to make sure that each available property is the perfect fit for everybody.
Whilst it might not quite be the plan, we’ll do everything we can to make it the best possible alternative, until you can have your very own place and, when it’s time to make the big move, we’ll be there to offer you a smooth transition from renting to buying.
And how will this affect sellers?
Although at first glance, this news may appear to be worrying for those with a property to sell – please don’t panic! The property market is still very buoyant and it’s believed that once restrictions are fully lifted and we continue to return to normality, the anticipated economic shift will help both those looking to buy and those with a home to sell.
Ultimately, when you consider the financial asset it offers, the benefits of owning a property far outweigh those of renting and, though the short-term costs are a little steeper than normal right now, we are confident that we will continue to see a steady stream of forward-thinking buyers, excited to make the investment in the meantime.
Whatever your situation, we’re here to help. We understand that you may have a million questions and don’t know which side to pick in this renting vs buying debate but don’t worry, we’re here to support you every step of the way. Whether you’re a seller, buyer, landlord or tenant, we will do what is right by you.
Please do give us a call to arrange an appointment – we will be pleased to provide you with a free pre-sales or pre-rental valuation if you have a property to sell or to let, or to spend time with you discussing options if you are looking to buy or rent.
Elizabeth Fundell MNAEA
- The full report can be found here: www.hamptons.co.uk/research/reports/market-insight-spring-2021/lettings/