Un­sta­ble UK pol­i­tics is mak­ing buy­ers ner­vous

Macclesfield Express - - SPORT -

IN a re­cent sur­vey by The Bri­tish Leas­ing and Rental As­so­ci­a­tion to iden­tify why so many are opt­ing to pay monthly for prod­ucts and ser­vices, re­sults have shown that when it comes to shelling out the cash for a big pur­chase such as a house or a new car, 40 per cent of those sur­veyed ad­mit­ted that the cur­rent un­sta­ble po­lit­i­cal cli­mate is de­ter­ring them from go­ing through with the pur­chase.

There is cer­tainly an em­pha­sis on rent­ing over buy­ing these days as it be­comes in­creas­ingly dif­fi­cult for younger peo­ple to get onto the prop­erty lad­der.

Buy-to-let has grown sig­nif­i­cantly over the past few decades and a push for longer ten­an­cies for renters is cer­tainly ap­par­ent in to­day’s UK prop­erty mar­ket.

How­ever, even renters look set to suf­fer due to the on­go­ing in­sta­bil­ity, with the Royal In­sti­tu­tion of Char­tered Sur­vey­ors pro­ject­ing that rents will in­crease faster than prop­erty prices over the com­ing five years, at 25pc and 20pc re­spec­tively.

While this is wor­ry­ing news for those who al­ready can’t af­ford to buy, and may in the fu­ture face the prospect of not be­ing able to af­ford to rent as well, the rental mar­ket is gov­erned by reg­u­la­tions in­tended to make it a fairer and cost ef­fec­tive al­ter­na­tive to home own­er­ship.

The gov­ern­ment has only re­cently an­nounced its plans to re­bal­ance hous­ing pol­icy to bet­ter help renters and im­prove good hous­ing sup­ply in that di­rec­tion.

So what are the ben­e­fits as­so­ci­ated with long-term leas­ing? The ob­vi­ous one is that ten­ants are not tied down in­def­i­nitely to one prop­erty and are able to leave once the min­i­mum ten­ancy pe­riod has ended.

As long as there is sup­ply enough to meet rental de­mand, this gives renters more flex­i­bil­ity to stay buoy­ant if their fi­nan­cial sit­u­a­tions change.

On the other hand pay­ing rent ev­ery month doesn’t give you any­thing back. Even though av­er­age house prices have risen over the past few years, rents have too, and mort­gages can still work out cheaper.

Weigh­ing up the pros and cons of each op­tion is es­sen­tial but it seems rent­ing is no longer a stop-gap for many UK res­i­dents, but a vi­able al­ter­na­tive to buy­ing out­right.

Many po­ten­tial buy­ers are choos­ing to rent be­cause of the un­cer­tainty of mak­ing a big pur­chase, a sur­vey by The Bri­tish Leas­ing and Rental As­so­ci­a­tion re­veals

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