A case for both renting or buying in London can easily be made. Douglas and Gordon explore which option first-time buyers should be aiming for. With such polarised opinions on which option is smarter financially, economically and in the long-term, deciding whether to rent or buy is a difficult decision for anyone stepping onto the property ladder for the first time. But despite an increase in people choosing to rent, buying may actually save you money over time. Rent Vs Buy Renting can be a worthwhile option for anyone needing flexibility, and with the high transaction costs of buying, mortgage fees, stamp duty and more, renting is also easier on the budget over the short term. In many other areas of the globe people opt for renting over buying, it is in different ways and means but it does seem to be one that people want to go for most, like the short term rentals toronto in Canada, the possibilities for renting around the world are endless. However, in England, according to a study on buying versus renting done for the International Review of Financial Analysis, an “increases in inflation and imputed rent top the balance in favor of ownership”. Gap between buying and renting is narrowing Despite a growing rental market in London and rental costs more affordable across more than half of British cities, data suggests the gap between buying and renting is narrowing. Halifax data shows that buying is financially better for first-timers in the long run as those looking to enter the property market can save up to £651 a year by buying rather than renting. The gap between the cost of buying and renting has narrowed by £19 a month since 2016, which is largely due to the rise in house prices for first-time buyers. If you’re looking to enter the property ladder then you should be prepared to make savings wherever possible. You might even want to look into loans for homeowners looking to raise extra money if you already own a house and want to move somewhere else. Saving up takes a lot of time so getting a loan might be a better option if you’ve already found your perfect house. A good place to start could be using comparison sites which might tell you that you could be financially better off if you switch energy providers. This should be something you take into consideration due to the ever-increasing cost of homeownership. House Prices in the UK continue to grow Property prices in the UK have risen by 5.4% compared to last year, with the average property price in London increasing from £472,718 in December 2016 to £483,568 in September 2017 according to the UK Land Registry. On the other hand, average weekly earnings for employees in Britain fell by 0.4% in the last year. If you’re looking to buy a house in your local area, try the search engine from Real Estate Agents Near to help you find local agents. The Number of renters has more than doubled in London According to trends, more people are opting to rent in London than buy. Data from the Parliamentary Research Briefings between 1996 and 2016 show that private renting has more than doubled, while the growth of owner-occupied homes has been much slower.
