Home owners choosing to move into Rented Accommodation

A considerable amount of recent news stories have been commenting on how many people living in the UK are not able to get onto the property ladder and therefore have to rent private accommodation instead. The articles usually talk to tenants who complain that the amount it costs them to rent a property is too high, and that they would prefer to buy a property yet cannot afford to save for a mortgage deposit. However, it now seems that there are some people who are actually choosing to sell their properties and move into private rented accommodation instead.

For example, one woman named Stephanie Betts recently decided to sell her home in Fulham and move to a rental property nearby so she could invest the extra money into her business. She said her husband Martin was initially unsure of the idea, especially as he “used to work in property so he was very keen on home ownership, whereas to me it’s about allocation of resources.” Ms Betts goes on to say that she has actually found that privately renting a property has meant that she gets more for her money and that she now has more options when it comes to what type of property she wants to live in.

Her family currently lives in a privately rented house in Henley-on-Thames, but are planning on moving to an even bigger property which costs around £2,500 a month. In comparison, properties in the area cost around one million pounds to buy, which would require a deposit of £250,000 – a price that is simply out of reach for the family. Ms Betts said: “I have noticed a real change in attitude. Friends used to be down on renting, but they are beginning to see the flexibility. No stamp duty, hardly any fees and sometimes more choice.”

Another benefit of living in a private rented accommodation is that it is the landlord’s responsibility to keep the property maintained, and as the costs are usually covered by landlords insurance it’s generally a win-win situation for both tenants and landlords. Some people are still wary however as many landlords only offer short-hold tenancies, but Geo Theo, who has rented a flat in London for the past ten years, said: “I have a great relationship with my landlord, so I’m pretty sure they wouldn’t kick me out with two months’ notice. I looked at buying again but it just doesn’t seem worth it for the expense and hassle.”