Renting or Buying – the pros and cons

by | Nov 21, 2021

Here we compare and contrast renting or buying – the pros and cons. The property market has increased by a tremendous 12% this year and home owners are seeing significant increases in the value of their houses.  It’s been researched that around 86% of UK residents want to actually purchase their own home, however, buying your own dwelling isn’t for everyone.

Renting your home


  1.  Renting a property can be reap benefits as the initial costs are less.  Expect to pay the first and last months rent amount and a security deposit when you sign the rental contract, but these payments are much less than the deposit you’d have to pay to buy your own home.
  2. Any maintenance or repairs that are needed remains the responsibility of the owner, not the tenant.  So, if the toilet leaks or the boiler breaks down, your Landlord is obligated to fix them at his/her own cost, not yours!
  3. If your job expects your location to be flexible, the option of renting makes it easier to relocate quicker than if you own your own home.


  1.  When renting a property, you won’t make any gain in equity of the house if the property market increases.  Any potential increase in value will be the owners, not the tenants.
  2. Your landlord may increase the rent without much notice, and this could be difficult to budget for, especially if you’ve got a lot of overheads.
  3. Similiarly, your landlord could give you notice to move out.  Although there are stringent laws about the minimal length of time your Landlord has to give as notice to move, it can be really stressful, particularly if you’ve got a family or have been resident in the property for a long time.
  4. You can’t make significant changes to the property, like redecorating etc, to make it more to your taste.

Buying your home


  1.  You have freedom and security.  When you own your own house, nobody’s going to tell you how to live and what to do.
  2. You will be able to decorate it to your taste and fill it to suit your individual taste and style.
  3. You can make changes both inside and outside to your home with the form of extensions or floor plan layouts.
  4. You won’t have to deal with irresponsible or unreasonable Landlords. Perhaps they won’t do repairs on time, or want to increase the rent inappropriately.
  5. You can’t be evicted from your own home, providing that you’re making your mortgage repayments on time.
  6. Purchasing your own home can, believe it or not, save you money.  When interest rates remain low and the property market is robust, you’ll benefit by an increase in property value with low mortgage repayments.  And If you benefit from a fixed rate mortgage, the rate can continue to be set for a fixed period of time.
  7. You will build equity in your home over the years, which may become an addition to your pension plan or savings, when you’re thinking of downsizing when you retire.


  1.  When you buy your own home you’ll need a substantial amount of money upfront in the way of a deposit. There are other fees associated with buying a property: mortgage arrangement fees, stamp duty paid to the Government and conveyancing fees paid on completion of purchase. The bigger the deposit, the cheaper mortgage rate you’ll get.  With the average property price in the UK now around £271,000, even a 10% deposit will cost £27,100!
  2. And of course, if you have a property to sell, you may need to factor in the selling costs and possibly Capital Gains Tax as well as the buying financial outlay.
  3. When you own a property instead of renting one, you’ll be responsible for every repair and maintenance costs of your home, which could be substantial over the years you own it.
  4. It’s a big financial commitment, owning your own home!.  In fact, being a property owner is possibly the largest financial commitment that most people make.  You can’t just walk away from your commitment!
  5. Mortgage repayments can become a difficult to keep up, especially if your financial position changes, or interest rates rise.
  6. House prices can go down as well as up.  If the property market goes down, then so will the value of your home.  And if you have to move before the property market recovers, you’ll have lost value on your financial commitment.

So, in conclusion, renting or buying – the pros and cons.  Depending on your circumstances – financial, employment and future plans, renting could be a better option for you at this stage and position in your life.  If you need any more information or advice when thinking whether to rent or buy your next home, look at our website here.  We’d be happy to help!

Other Posts