Will Leyland, 14 July 2021
That’s something of a bold statement, right?
Don’t worry, it’s something we intend to back up with some figures and predictions.
For years there has been an attitude, if not a culture, in Britain that sees renting as a failure in comparison to owning your own home and it’s just not an attitude that’s shared across most of the world.
It’s something that you’ll be reading as a renter and almost immediately identifying with. The pitied comments from relatives, the constant questions about when you’re intending to buy, whether you think it’s wasting money by paying rent than towards a property? Yeah, it’s something we’ve all had in the past.
That being said, it’s something that we’re seeing change slowly but surely across the country and certainly since the pandemic.
There’s been an awful lot of coverage recently in the mainstream media about how quickly house prices are rising and whilst that’s absolutely true, we can see a few reasons why you may look back at this year and appreciate that you didn’t buy a house.
First things first then, the stamp duty holiday. It should become clear in the next few months that the break in the tax created an artificially high increase in house prices across the year.
Yes, there have been times when house prices have increased by more than 10% year-on-year, but this is very unlikely to last across the proceeding 12 months.
The holiday was an attempt by the government to prop up house prices following restrictions, however, it’s highly likely that they’ve overcooked things and we could see a drop quite shortly.
Secondly, there was quite a large drive in demand thanks to people going a bit stir crazy during lockdown and the related restrictions that were put in place for public health reasons.
We’ve already seen the so-called ‘race for space’ which saw many looking to move into more rural or quieter areas, and that now seems to be tailing off almost as quickly as it started.
Many who’d been considering a move were prompted into action by being kept at home for prolonged periods, however, with almost all restrictions looking likely to be lifted in about a week’s time, can we really see that continuing much longer?
Finally, apart from dropping demand and potentially stagnating prices, most people were in something of a rush to have their sales and purchases completed before the end of the stamp duty holiday.
There are more than likely quite a few properties out there with some significant issues and repairs that will require attention at a potentially high cost.
As a renter, you’ll be aware that maintenance falls under the responsibility of the landlord or homeowner and, as such, this isn’t a cost that you’d need to consider as a tenant.
Despite media coverage going a little berserk for property ownership over the past year, it’s likely that you’re going to be more than a little glad you’re renting over the next 12 months.
Will Leyland, 14 July 2021