House prices in London have soared in recent years and for many, the debate about whether to buy or rent a property continues. The choice depends largely on the finances available, with a lack of access to a sizable property deposit a key factor as to why many simply aren’t able buy. Those who can buy however, often find themselves with key questions to answer about whether to buy now or continue renting. So what are the pros and cons of each? We take a look:
When it comes to purchasing a property, James Marshall, Sales Manager at our Islington branch says:
- For many buyers in London, paying off a mortgage can effectively be seen as a savings plan. Not only does it safeguard you a home in the future, but with many properties in London benefiting from good capital appreciation, it also acts as a solid investment with the Land Registry reporting annual price rises across the Capital of 16.4%.
- Buying a property gives you security. The only way you can be evicted from your home is by defaulting on your mortgage repayments so the issues about being given notice to leave from a landlord become a thing of the past.
- Owning a home allows you to decorate it or develop it as you wish and as your circumstances change (subject to planning regulations). This can range from painting a room or replacing the flooring to extending into the loft or side return and for many families this is a huge draw, rather than having to upsize house as the family grows.
For the positives of renting however, Damien Brown, Lettings Manager at our Crouch End branch, comments:
- Many tenants appreciate the flexibility and freedom that renting affords them, as they are able to move more frequently and experience different parts of the city in which they live. In addition, maintenance and repairs of the property is usually the responsibility of the landlord.
- When it comes to securing funds, the process is much simpler. There is no need to deal with a difficult mortgage application nor the requirement to find thousands of pounds as a deposit, apart from the usual six week’s rent held as security.
- Renting is considerably less stressful than buying a home and the process can be tied up in a matter of days rather than weeks. The fall through rate is also far lower than in the sales market.