The circumstances are not at their best for buying property at the moment, something that has led to an increase in the numbers renting. This has led to an opportunity for private landlord and to an increase in buy-to-let portable toilet rental.
The circumstances are not at their best for buying property at the moment, something that has led to an increase in the numbers renting. The housing market has stagnated in the last few years, which is in stark contrast to the boom that preceded it. House and flat prices had previously rocketed and fast rises in value were almost thought of as a guarantee. Despite higher prices many were able to buy with mortgages easy to come by, with many providers even offering 100% mortgages.
The story of the economy and its impact on housing in the last three or four years has been well documented but, in short, it has made it a lot harder for people, and in particular first time buyers, to obtain a mortgage. A significantly higher deposit is now required to purchase a home.
The problem for those wishing to buy a home has been confounded by the fact that while prices have fallen, in most cases they haven’t fallen significantly. Home owners have been reluctant to sell for less than they bought for, and this along with it being harder to buy, has meant a lack of movement in the housing market. This has made buying a home less affordable.
The problems in the market for buying homes has led to a more flourishing rental market. More have been looking to rent a flat or house, something that has many benefits, some of which are outlined below.
Renting doesn’t carry the same commitment that buying a home does. If circumstances change, for example a change of job, then you can move quickly with a month or two notice. It is also a lot easier to find another place to rent as you don’t have to spend months trying to sell and find another property.
The most obvious benefit of renting is that it tends to be cheaper. In particular, you don’t need the same sort of deposit. A deposit for a rented flat is likely to be a few hundred pounds, not several thousand as it is for buying a home. This can mean renters have more disposable income or can live in a bigger or nicer place.
If things go wrong in a bought home, then it is the home owner’s responsibility to either fix it or pay for someone to do it for them. If renting, this is the responsibility of the landlord.
Being harder to buy a home has inevitable meant more people are renting. This has had a positive impact on buy-to-let mortgages. People are seeing the demand for rental properties and looking to buy for the purpose of renting the property out. The flourishing rental market has been a good opportunity for some to become private landlords. Although prices haven’t dropped as much as some expected, they have gone down so places are available for less. This has further assisted private landlords. They can collect rent to pay for the majority of the mortgage and wait for the value to increase before selling for a profit in the future.
For many renting has become a must recently, while for others it has become the sensible option to avoid having an unaffordable or risky mortgage. In some cases it is a choice, either because it is easier for practical reasons such as relocation or less responsibility, or because you can get more for your money.