There is no denying that homeownership is viewed as a rite of passage here in the United Kingdom. This isn’t the same around the world, in many countries renting property is seen to be the norm, but here, people are encouraged to save for a home they own as soon as they can.
There is a lot to be said for owning an asset, and placing money towards this on a monthly basis. However, there are many pertinent reasons not to own a home, and these reasons are growing rapidly in the current climate.
There will always be high demand for rental property
The impact of the stamp duty holiday will likely see many people buy property in the next few months, but there is a great deal to be said for renting, according to a high-profile former estate agent.
Ed Mead was a partner in a leading London agency, he was a strong supporter of OnTheMarket in its early days and he is now known for co-founding outsourced supplier Viewber. Mead has written for The Spectator website and he said the benefits associated with property ownership are no longer significantly greater than the benefits of renting.
Mead says; “There are plenty of reasons why renting is a good idea. With house prices likely to stay flat, fear of missing out won’t exist. Renting means no stamp duty and agency fee every time you move and it gives you the flexibility to try living in new areas. Government policy is moving towards helping renters secure longer contracts with more security. Best of all, renting frees up your capital to invest elsewhere or start your own business.”
Mead has experience when it comes to the rental market
Mead himself draws on experience of renting property in London for more than 20 years. This was the period when London property prices rose by more than 492%.
Mead also added; “The last ten years have seen a still robust 73 per cent gain, but I think even the most optimistic commentators would not see that repeating over the next ten. Satisfying though ownership can be, there’s little or no reason to feel hard done by if you choose to rent. From a financial perspective, by way of example, the money I might have put into a house went into a business and I’ve gained more financially and professionally from the experience. If Brits stopped looking at property as a piggybank, might they become more entrepreneurial.”
There is significant demand for rental property in the UK, and this is unlikely to fade away. Therefore, there is a strong chance for landlords to invest in property and make short and long-term returns.
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