Reasons for renting in present day property market.

The days where many would have said it is better to buy than rent have long since passed particularly from a financial point of view in the present uncertain economic times. Depending on your circumstances, but for many young people the difficulties of obtaining a mortgage, let alone raising sufficient funds for the necessary deposit, is a big stumbling block.

An interesting statistic perhaps gives credence to this changing scenario is, that 1million more people now rent compared with 6 years ago, which is understandable as the average deposit needed for first time buyers is now £31,700! A further statistic not always appreciated, but generally with mortgages some 80% of your monthly costs goes in interest in the first 5 years leaving you still to repay the capital!

Without a doubt for young people, so often wishing to develop independence or start a home with their partners sooner rather than later, the lack of hassle, setting up and furnishing costs avoided by renting, is very attractive option. This becomes even more so if their circumstances, not just financial, but perhaps needing flexibility time wise or even location wise, all of which is so easily found by renting.

From an investment angle buying had always seemed the best road to take, but the uncertain economic times we now live in and the volatile value of properties has made this once 'dead cert' investment something of a gamble. By renting there is no gamble and a quick exit is assured should the need arise.

Therefore in the knowledge that it is certainly cheaper to rent than buy in London, with the upfront costs and uncertain long term investment value, there is much to support the reason for younger people to rent until perhaps later in life. It is quite clear first time buyers are much older these days than 10 years ago and the younger generation clearly wish to enjoy flexibility, having some spare cash and still have the comforts of a home; all perfectly possible when renting!