The Sands of Time

It seems that the sands of time are once again shifting. The last 30 years have seen a focus on the need to buy buy buy with a mortgage up to the hilt if needs be, regardless whether we can afford it.  We have seen the heartache of not being able to meet your mortgage repayment brings with the huge amount of repossessions that have transpired. Prior to this era renting was more predominant and rents were more within the means of many of us in respect of affordability.

This shift is borne out by figures that show the demand for rented properties across the UK has increased 15% annually in June and by 5% on the month however in contrast availability of renal properties has decreased by 17% meaning that there is an average of six prospective tenants for every rental property that becomes available.

From the beginning of the year it is evident that the rental market is very active this year with new tenancies nationally rising by 17% annually and reflects that a healthy rental market will work independently of the sales market.

To rent or not to rent!

If you only intend on staying in an area for a short period of time or you simply are not ready to settle down renting becomes the most cost effective thing to do because it comes with a degree of flexibility and freedom that is lost when you buy. 

Buying is a significant financial commitment and if you need to move it can take a long time to get all the balls in the air to sell your property or rent it out. Also with a big financial commitment you have a lot more at stake if you can’t keep up the repayments, after all simply shifting to a smaller place while finances are tight just is not an option.

You have no repairs and maintenance costs when renting and building insurance is covered by the landlord. It can be said it is easier to budget when you have just one fixed mount to pay out with no associated costs.

One demand leads to another

Increased demand for rented properties has seen, for those with funds to support it, an increase in applications for buy to let mortgages, around 14% increase in June and a 12% since May. This could however also be attributed to the fact that buy-to-let mortgages are not subject to MMR (Mortgage Market Review) rules and the change in rules relating to pension annuities could be stimulating those in retirement to diversify their pension pots.

Rent of buy is always a difficult juggle, but in the main it must come down to affordability and where you are in life at that point in time and where you want to go.

Last but not least

At David Jordan Estate Agents we are creative, inspirational and responsive to our clients and to the ever changing face of our industry.  So if you are thinking of letting, selling or are looking for a property to rent or buy give us a call.

David Jordan Estate Agents are on hand to welcome you as a new client or welcome you as one of our existing clients with lot of advice and tips to help you.

Call us on: T:  01323 898414

or email us using the details on our website www.davidjordan.co.uk