Should you rent or buy a property?

Here, the team at Shortland Horne explore in more detail.

Buying a property

Financial benefits

Owning a property has long been seen as a key milestone, with home ownership often associated with financial security:

• Equity building: one of the biggest advantages of buying is that monthly mortgage payments, although sometimes higher than rent, contribute towards owning an asset. Over time, the mortgage balance reduces, and the homeowner builds equity in the property. This equity can grow further if the value of the property increases.
• Investment potential: for families in particular, buying offers a sense of permanence and the security of not being at risk of a landlord deciding to sell or increase the rent.

• Equity release: If you own a home, then you have the potential to release equity from the property for things like home improvements.

• Planning for the future: once a mortgage is paid off, homeowners can live without monthly housing payments (beyond maintenance and council tax), which can make retirement more affordable.

Security and stability

Owning a property can bring with it a sense of security and stability:

• Security: owning a property rather than renting means that tenants won’t need to worry about your rent increasing or being asked to move out by a landlord.

• Personalisation: homeowners have the freedom to decorate, renovate and customise their property as they wish. This isn’t always possible when renting.

Renting a property

Unlike buying a property, renting, however, offers flexibility and more financial freedom:

Flexibility

• The ability to move easily: renting a property allows people to move easily and, in some cases, quickly, without the costs and delays that can come with a house sale. 

• Access to prime locations at a lower cost: renting gives people the chance to live in more sought-after areas that they would not be able to afford if they owned a home.

• No long-term contract: While most leases do have some contract, they tend to be for a set period – perhaps six or 12 months. This means renters have the flexibility to change their living situation should their circumstances change, such as getting a new job.

Financial benefits

• Lower upfront costs: upfront costs of renting are significantly lower. A tenant usually needs only a deposit and one month’s rent, while buying requires a substantial deposit, legal fees, and stamp duty. For many, particularly first-time buyers facing high property prices, saving for a deposit is a major hurdle.

• Less maintenance responsibility: when renting, the responsibility for major repairs and maintenance falls with the landlord. This means renters are free from unexpected and expensive repair bills.

• Predictable expenses: rent payments are usually fixed, which makes it easier for people to plan financially.

• Financial freedom: not owning a home allows people to invest elsewhere.

Financial and market considerations

The decision between renting and buying is influenced heavily by the housing market. In recent years, UK property prices have risen faster than wages, making it harder for first-time buyers to get on the ladder. Rising interest rates also affect affordability, increasing mortgage repayments. 

On the other hand, rental prices have also been climbing, leaving many people feeling squeezed whichever option they choose.

Are you moving home?

It’s important to note that there’s no one-size-fits-all answer to whether you should rent or buy. Buying offers stability and the chance to build wealth, while renting provides flexibility and lower upfront costs.

The best choice depends on lifestyle, finances, and personal priorities. If you’re thinking about moving, get in touch with Shortland Horne. Our property experts specialise in helping people find their next home – whether that’s to buy or rent, we are here for you.