This guest post was provided by WeBuyAnyHouse.
It’s thought that one of the holy grails of adult life is homeownership. However, the tough circumstances and sacrifices that come with owning a property – such as taking on a mortgage, other existing financial commitments such as property tax and maintenance costs, in addition to the thought of living in one place for a number of years, means that the popularity of renting has soared.
Owning a property has become somewhat of a rite of passage in life, however committing to becoming a homeowner isn’t for everyone. There are a plethora of reasons as to why people rent: whether that’s due to being burdened with a high student loan debt, trouble saving for a down payment, whether they prefer the flexibility and ease of renting, or just feel more comfortable financially – renting has become a standard choice for a vast majority of people who are all ages with varying circumstances.
The ongoing Covid-19 pandemic has impacted the economy massively – and the property market is no exception. However, amongst the industries that have been hit, the property market has managed to stay relatively stable.
As of 2021, new reports have shown that for the first time, renters are better off than first-time buyers, and overall, the demand for rental properties is at an all-time high. City centre properties are of increasing demand, as amenities begin to open following lockdown.
As the economy recovers from the global pandemic, the laws surrounding various sectors are expected to change – including the property market. Housing experts have made predictions as to what this year will hold for renters, so to make things easier, We Buy Any House have compiled our top list of things to expect as a tenant in 2021.
After being stuck indoors for the best part of 18 months, nobody better than renters understand the importance of having adequate space in their property. The pandemic saw those living in smaller spaces crave a larger living space – and due to this, landlords and contractors have listened. The rise in demand for three-bedroom apartments has risen, in addition to apartments that have the space for a home office as the implementation of working from home seems to be a lasting movement.
During the ongoing pandemic, a ban was placed on landlords evicting their tenants – except for in the most serious circumstances which included antisocial behaviour, illegal occupation, fraud or rent arrears of more than six months, or if domestic abuse was occurring at the residence. This ban ended on 31st May 2021. However, until October, landlords will legally have to give their tenants longer notice if they want to evict them. The six-month notice period that was implemented in May has now been changed to a four-month notice period, however if the circumstances are serious your landlord has the right to give you two to four weeks’ notice.
As the world begins to open up, people are keen to socialise instead of being alone in their home. Our yearning for social interaction has spurred an incentive to broaden our sense of home beyond our four walls, to a community that exists beyond. Throughout the beginning of 2021, the popularity of localism has soared, and will continue to stay throughout the rest of the year and into 2022. Building apartment complexes near parks and other community spaces has become an incentive.
- To Be Better Off Financially
A report made by Hamptons has claimed that renters are now £71 a month better off than those that own a home. For the first time since December 2014, renters are paying significantly less per month than those with a 90% mortgage. This is a recent change, as before the pandemic, homeowners that had a 10% mortgage deposit were more than £100 a month better off than renters. In the UK, the average spend of tenants totals at £1,054 a month, whereas homeowners with 90% mortgages pay £1,125.
Since the pandemic, the government is making it easier for responsible tenants with ‘well behaved pets’ to rent a home, in addition to revising their standard tenancy agreement. The model tenancy agreement unveiled by the government on 28th January has been amended, and as of now pets will be the default position. This means that under the government’s recommended contract for landlords, there will no longer be a blanket ban on pets in the property.
An incentive that started in April 2021, all landlords have been required to forward any payments made by a tenant into a money protection scheme. Deposits or monthly rent, amongst other payments, must be protected- which is beneficial for tenants as it creates peace of mind as to the whereabouts and safety of your money. In addition to this, agents must display a certificate which shows which scheme they have chosen to go with, alongside including the information on their website.
Most aspects of our life changed throughout the pandemic, and the rental market is no exception. The demands for what renters are desiring have changed since late 2020. Larger properties that have easy links to transportation are in demand, which has pushed up the average rent in areas such as Rochdale Hastings by 8%. The price of renting in cities such as Greater London, Edinburgh and Greater Manchester have fallen year on year. The overall demand on rent has increased by 21%, as houses and apartments are being let 30% quicker in comparison to one year ago.
If you’re considering renting, here are some advantages that may help you decide:
- Short Tenancies: Your lease can be as short as six months, and you can move out any time after this period. This is beneficial as it means you can be flexible with your location, which is ideal if you work in varying locations.
- Time Frame: Renting allows things to be done in a shorter time frame. As it’s quicker to get the legal paperwork done when renting, renting appears to be a less serious commitment as aside from the finances, situations can be turned around quite quickly.
- Maintenance: As the maintenance of the property is the landlord’s responsibility, worrying about the cost of a broken boiler or faulty toilet is one less thing to worry about.
- Furnishings: Most of the time you can rent a place that is fully furnished- which can save you a great deal of money instead of buying furniture to fill a property.
- Legal Fee’s: As a tenant you don’t have to worry about paying mortgages, deposit or house price movement.
The stigma attached to renting is slowly disappearing. If anything, the pandemic has taught us anything, it’s that circumstances can change instantly-and this applies to your housing status and the housing market in general. Over the last 18 months, the legalities of renting have changed massively- as the government and landlords are now considering the needs and desires of renting tenants.
This guest post was provided by WeBuyAnyHouse. The opinions expressed by the guest writer above and those providing comments are theirs alone, and do not necessarily reflect the opinions of SevenCapital or any employee thereof. SevenCapital is not responsible for the accuracy of any of the information supplied by the guest writer.