Renting is the best option in UK today

Posted under Advice by Jermaine

There is a change in the housing market. Days of easy money are gone with mortgage companies no longer offering 100 per cent or more.

Mortgage will be difficult to get and with prices most likely to stagnate in 2008, renting is a good option.

According to David Hollingworth, a mortgage broker, in many ways this is good news. It will let first-time buyers to wait and save up a deposit and they will not have to worry about house prices getting unaffordable.

Some people have decided to wait for at least twelve months before buying property says Rob Clifford, chief executive of Mortgageforce.

The positive side of renting is that it gives a person more flexibility to move where his work takes him. It saves him from the commitment of mortgage payments. There are no building insurance bills and the wear-and-tear maintenance cost has to be borne by the landlord. The rent may be lesser than the mortgage payments.

The negative is that by renting, the capital growth got from a property is lost, especially when property has been a better investment than most. The rising population in UK needs more housing so the rentals will remain high.

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