Are the pressure and constraints allied with owning your own house really worth the aggravation? With the valuations of property rising into unchartered territory, disposable income is coming under increased scrutiny as households struggles to cope with the financial strain of modern day living.
The average British family has a take-home pay of just over £16,000 to live on, highlighting the significant disparity in house prices to wage ratios. It is becoming more and more arduous for borrowers to be approved for a mortgage following the rigorous criteria implemented in the UK, designed to prevent any return of the pre-crisis mortgage lending that was depicted by many as “reckless”.
Therefore, the private-rental market has become the solitary alternative for those seeking housing in the UK – its status boosted by the flexibility and reliability that it provides. The concept of ownership appears to be a dying necessity with new research predicting “by 2025 there may be slightly more people renting privately in the UK than owning with a mortgage”.
This change in attitudes towards the property ladder makes renting a viable long-term option, but this could become unsustainable unless earnings increase significantly. Consequently, tenants are unable to set aside sufficient funds to save for a future house deposit and as a result renting becomes a circle of fulfillment – a lifestyle choice perfect for individuals with professional aspirations.
Today, the average person changes jobs 10-15 times as they go in search of more demanding challenges and greater accomplishments. Many workers now spend five years or less in one position, so renting allows uncomplicated accessibility when an individual decides that the time is right to move on in their working life.
As well as being untamed from the financial commitment of a long-term mortgage, renting presents individuals with the opportunity to reside in specific vicinity where they could never afford to purchase a property. A central location in a thriving city is often cost effective through its location – close to bars, shopping and entertainment and without the requirement of frequent commuting. In essence, it all combines together to improve the quality of a person or family’s life.
Renting is often referred to as “dead money”, but the private rented sector can make the capital an individual possesses travel further than one whose name is bound on the title deeds of a property. Free from maintenance costs and with longer lets becoming more commonplace, an overwhelming sense of security and continuity is being experienced by both the tenant and landlord. If the magnetism of renting has failed to capture your attention though, then your next best step maybe to invest in a caravan.
Constantly surrounded by Mother Nature and your only bills being site fees and your gas and electricity costs, it sure makes economic sense. After all with the ‘cheapest’ flat in London selling for £79,000 for a measly 75 square feet of room, you could buy a caravan with 3 times the space for a fraction of the price. Whatever you decide, one thing is certain – the dream of owning your own home will be just that for the majority of the population in the coming years.